"Now It's Our Turn to Exploit"...Trump Drops 104% Tariff Bomb on China

Trump's Second Term Government to Impose High Tariffs on China from the 9th

U.S. President Donald Trump stated on the 8th (local time) regarding tariff policy, "Many countries have exploited us tremendously. Now it's our turn to exploit."

President Trump claimed at a National Republican Congressional Committee (NRCC) dinner held in Washington, D.C., "We are making a tremendous amount of money through tariffs. It's up to $2 billion a day. It's hard to believe."

Regarding the global trade war, he emphasized, "This is not a war," and "Many countries are coming to us, and they want to negotiate."

He mentioned that from the 9th, a 104% tariff would be imposed on China, saying, "Other countries are also paying tariffs, and now China is paying 104%. It may seem like an absurd figure, but in the past, China has imposed tariffs of 100% or 125% on many American products."

He also criticized, "What's worse than tariffs are non-tariff barriers," and "China announced a yuan devaluation today, which is currency manipulation to offset U.S. tariffs on China."

He continued, "You shouldn't play the game this way," and "That's why the 104% tariff, which will be applied from midnight tonight, will remain until China comes to the negotiating table."

President Trump predicted, "I think at some point they will have no choice but to negotiate."

He also mentioned the automobile industry. He pointed out, "In 1950, the U.S. produced 75% of the world's cars, but now it's only 11%."

He emphasized, "Despite our generosity to the world, it's hard to find American cars in Berlin, Tokyo, Seoul, and Shanghai," and "I believe we should buy American-made cars, not maximize the profits of foreign companies. We must protect the American Dream."

Regarding pharmaceuticals, he said, "We will soon announce tariffs on major pharmaceuticals," and "Because the U.S. is a big market, pharmaceutical manufacturing plants will flock back to the U.S. and leave China."

President Trump also criticized the Biden administration's semiconductor support policy in remarks related to semiconductor company TSMC's investment in the U.S., saying, "I didn't give them money, and there was no stupid semiconductor law," and "Instead, I just warned that they would have to pay up to a 100% tariff if they didn't build a factory in the U.S."

Regarding criticism of tariff policy, he dismissed it by saying, "The sharp noise you heard about tariffs this week is just the voices of scammers who didn't think anything when the U.S. lost 90,000 factories due to NAFTA membership."

He also criticized some Republican lawmakers' moves to strengthen congressional control over tariffs, saying, "They are just rebels," and "Congress can't negotiate like I can. If they negotiate, they will sell out America."

Finally, he expressed confidence, "We are getting a lot of help thanks to the tariff policy. This policy will be recorded as a legendary achievement, and we will win big in the midterm elections."

President Trump signed an executive order in the afternoon to increase reciprocal tariffs on China from the existing 34% to 84%. As a result, the tariffs imposed on China by Trump's second-term government will reach 104% from the 9th.

Yoo Ji-hee, Hankyung.com Reporter keephee@hankyung.com