Seoul: The newly announced U.S. "reciprocal" tariff on South Korea can be a starting point in Seoul's negotiations with Washington over trade issues and possibly be changed through dialogue in the coming days, a former U.S. official said Thursday. Fred Fleitz, a former chief of staff of the National Security Council under the previous Trump administration, made the suggestion after Trump's announcement to impose a 26 percent reciprocal tariff on South Korea starting next Wednesday, as he seeks to reduce America's trade deficits and bolster domestic manufacturing.
According to Yonhap News Agency, Fleitz, vice chair of the America First Policy Institute, stated during a forum hosted by the Sejong Institute in Seoul that this tariff announcement is an "opening salvo in negotiations." He emphasized that the tariff could be negotiated and altered over time, reflecting Trump's position that trade should be fair. Fleitz noted that Trump believes America has been taken advantage of by many nations and is attempting to address this issue.
The country-specific duties, including 34 percent for China, 24 percent for Japan, and 20 percent for the European Union, are part of Trump's effort to correct what he perceives as unfair treatment of the U.S. in international trade. This announcement has increased uncertainties in South Korea, an export-driven economy, concerning its future relationship with the United States, especially amid a political crisis following the impeachment of President Yoon Suk Yeol after a brief imposition of martial law last December.
Fleitz highlighted that Trump supports alliances despite skepticism from U.S. allies, suggesting that the relationship with the U.S. offers South Korea opportunities to improve security and economic benefits. He mentioned shipbuilding as a significant area where America requires assistance, particularly in building naval vessels, and indicated that South Korea's involvement is necessary.
Additionally, Fleitz expressed hope that South Korea will participate in the Alaska liquefied natural gas project proposed by Trump, which aims to help Seoul reduce its reliance on Russian gas and Middle Eastern oil. He remarked that this project is a priority for Trump and hoped it would be for the next South Korean government as well.
On the possibility of Trump resuming nuclear dialogue with North Korean leader Kim Jong-un, Fleitz suggested that the success of U.S. efforts to end the war in Ukraine could facilitate this process. He speculated that bringing Russia back into the international community and possibly easing sanctions in exchange for Russia's contribution to Ukraine's reconstruction could open new avenues for negotiations with North Korea.