Punitive taxes on imports from key US trading partners are set to rise on Wednesday despite President Donald Trump's claims of multiple trade deals in the making.
Trump's 10pc baseline tariff on imports nearly every foreign country already went into effect on 5 April. The higher, "reciprocal" taxes will go into effect as scheduled, at 12:01am ET on 9 April, US trade representative Jamieson Greer told the Senate Finance Committee today.
Trump, via his social media platform, said today he discussed a possible trade deal with South Korea and added that "we are likewise dealing with many other countries, all of whom want to make a deal with the United States."
Greer told the Senate panel that more than 50 countries have reached out to the US to negotiate trade deals. Treasury secretary Scott Bessent separately claimed that more than 70 countries are interested in a trade deal with the US.
Both Democratic and Republican senators on the Senate panel pressed Greer to explain whether negotiations would result in lowering tariff rates. But Greer outlined a process that he expects would lower foreign countries' tariff rates on US products and commit them to buy more US energy and other products.
"There are things we can do with our trading partners, things that aren't always purely in the trade sector," Greer said. Possible subjects for trade negotiations could involve "export controls alignment or investment screening, alignment on energy, making sure that our partners are tied up with us with respect to LNG and other resources, as opposed to being dependent on other countries."
The US is primarily looking to reduce trade deficits with those countries, Greer said. "What we have told them is, 'if you have a better idea to achieve reciprocity and to get our trade deficit down, we want to talk to you.'"
Trump, in turn, suggested that a possible deal with South Korea could include "large scale purchase of US LNG" and "their joint venture in an Alaska Pipeline". The latter is a reference to the planned 20mn t/yr Alaska LNG project, which would be the most expensive liquefaction facilities ever built in the US if it becomes a reality.
Trump has talked up potential support for Alaska LNG from Japan, South Korea and Taiwan for months. But the three countries still became subject to high tariffs.
