Hassett, NEC Chairman, Urges Removal of Tariff and Non-Tariff Barriers in Europe, China, and South Korea
“Some Uncertainty Until April 2 Tariff Announcement”
(Washington = Yonhap News) Special Correspondents Cho Joon-hyung and Song Sang-ho = Ahead of the April 2 announcement of “reciprocal tariffs,” a key official of the Trump administration named South Korea as one of the countries with which the U.S. faces a trade deficit and urged the removal of non-tariff barriers.
Kevin Hassett, Chairman of the U.S. White House National Economic Council (NEC), stated in an interview with CNBC on the 17th, “The trade deficit with Europe, China, and South Korea has been ongoing for years. The reason for these trade deficits is the presence of non-tariff barriers and high tariffs, which make it difficult for U.S. companies to compete.”
Hassett asserted, “If they (trade surplus countries with the U.S.) lower all barriers immediately, negotiations will end. We expect many countries will respond favorably to President Donald Trump’s negotiations. President Trump is very flexible.”
However, he added, “Many countries will not do so,” indicating that tariffs would be imposed on those countries that do not remove trade barriers.
Last year, South Korea’s trade surplus with the U.S. amounted to $55.7 billion, making it the 8th largest source of the U.S. trade deficit.
South Korea and the U.S. have a Free Trade Agreement (FTA) and do not impose tariffs on an absolute majority of items, so Hassett’s remarks could be interpreted as a demand for the removal of South Korea’s so-called non-tariff barriers.
Hassett also remarked, “There will certainly be some uncertainty from now until April 2, when the reciprocal tariffs are announced. But by April, the market will recognize that a reciprocal trade policy is very reasonable.”
He expressed the view that uncertainty surrounding the market would disappear after April 2, according to CNBC.
Reciprocal tariffs are set to be determined by President Trump, taking into account various factors like each country’s tariff rates and non-tariff barriers on U.S. exports. This is expected to be a significant milestone in President Trump’s “tariff war.”
Hassett further linked the issue of illegal immigrants and drugs entering the U.S. through the southern and northern borders with tariffs imposed on Mexico, Canada, and China, noting that “the situation is developing very positively” concerning tariff policies and achieving certain results in border security.