Besent Warns of High Tariffs if Negotiations Slow

Countries Mimic 'China's Standoff' with Threats

Foreign Media: "Reluctant to Lower US Car Tariffs

Stalemate in Negotiations with Korea, Japan, EU"

Scott Besent, the US Treasury Secretary, warned on the 18th (local time) that countries not engaging in good-faith trade negotiations with the US will receive a letter with the tariff rates announced on April 2. However, there is an analysis that among major countries worldwide, there is a growing sentiment not to rush negotiations with the US after witnessing China secure a '90-day tariff truce' following a direct confrontation with the US.

In an interview with NBC on the same day, Secretary Besent stated, "If you do not negotiate with the US in good faith, you will receive a letter stating 'this is the tariff rate,'" and added, "These countries will be subject to the reciprocal tariff rates announced by President Trump on the 2nd of last month."

Additionally, in an interview with CNN, Secretary Besent emphasized, "The immediate focus is on 18 important trade relationships," and made clear his intention to continue individual negotiations with major trading partners like Korea. For countries other than the 18, he mentioned, "There are many small trading nations where we might just present 'numbers,' and we will likely engage in many regional negotiations," explaining, "It could be a notification like 'this is the tariff rate for Central America, this is the tariff rate for Africa.'" This implies that regional tariffs could be set and notified for countries outside the core trading partners.

Last month, the US notified Korea of a 25% reciprocal tariff rate. If Korea pays this tariff as is, Korean goods could face tariffs not much different from the 30% tariff on Chinese goods and compete in the US market. Secretary Besent stated, "With a few exceptions, countries are bringing us very good proposals," and added, "Countries want to lower their (US) tariffs and non-tariff barriers."

However, foreign media evaluate that there are signs of major economies trying to slow down negotiations with the US. Bloomberg reported on the same day, "Countries that have watched China, which responded strongly, lead favorable negotiations are questioning whether quick negotiations are the right path."

Japanese media have suggested that after the US-China tariff agreement, there is a possibility of reaching an agreement around July, ahead of the House of Councillors election, despite Akazawa Ryosei, Japan's Minister of Economic Revitalization, initially mentioning a June agreement on US-Japan trade negotiations. Alicia Garcia, Chief Economist for Asia-Pacific at French investment bank Natixis, said, "Everyone in line is thinking, 'Why am I in line?'" and added, "China skipped the line, and for countries watching, this is doubly painful as there is no clear benefit to the US."

Reporter Kim Dong-hyun 3code@hankyung.com