Tariffs on Korea 'opening salvo,' not endgame: Trump’s ex-aide

[홀랜]

Tariffs on Korea 'opening salvo,' not endgame: Trump’s ex-aide

Fred Fleitz, vice chair of the Center for American Security at the America First Policy Institute, speaks at the “Trump 2.0 and Security in East Asia” forum hosted by the Sejong Institute in Seoul on Thursday. (Yonhap)

President Donald Trump’s newly announced reciprocal tariffs on South Korean imports are an “opening bid” for broader trade negotiations — not an outcome or a policy set in stone, former Trump national security aide Fred Fleitz said Thursday.

“I will tell you that I think this is the opening salvo in negotiations, and that this is something that will be negotiated and altered over time,” Fred Fleitz, former Chief of Staff of the National Security Council under Trump’s first term said during the “Trump 2.0 and Security in East Asia” forum hosted by the Sejong Institute in Seoul.

“But it does reflect Trump’s position that trade can’t just be free — it has to be fair. And he does think America has been taken advantage of by many nations. He’s trying to settle a score.”

Fleitz reiterated that “Trump thinks tariffs are a useful tool to make trade fair. That's his position.”

Fleitz’s comments came after Trump announced Wednesday plans to impose a 26 percent “reciprocal” tariff on South Korean imports, along with a minimum “baseline” tariff on all goods entering the US. The 10 percent baseline tariff and the higher reciprocal rate are set to take effect on April 5 and April 9, respectively.

“Now I don’t think this is a precarious situation — I think it’s an unprecedented situation.”

Fleitz, who currently serves as vice chair of the Center for American Security at the America First Policy Institute, predicted that “South Korea will do very well in those negotiations,” expressing a positive outlook for trade talks between the two allies.

“There will be such a fight with Europe that it will leave an opening for South Korea to strike some very important deals for your economy, for your security, and for global security,” Fleitz said.

“I hope your (the Korean) government will see it that way. I know you don’t welcome these tariffs, but I still think they can be negotiated — and that there are other opportunities that can be pursued.”

Fleitz called for South Korea to take the initiative, calling on Seoul to pursue strategic agreements that could provide both countries' security and mutual economic benefits in the course of trade negotiations.

“Trump’s a dealmaker. He wants you to make him a deal. That’s what I would say to that.”

Fleitz specifically cited Korea-US cooperation in shipbuilding and energy as strategic opportunities. With China's naval expansion accelerating, the US is in urgent need of South Korea's assistance to build naval vessels, he said.

Fleitz also pointed to the significance of the proposed Alaska LNG pipeline — a Trump-backed investment proposal for the production and export of Alaskan natural gas — that could reduce delivery time to South Korea and enable it to reduce its reliance on imports of energy from Russia and the unstable Persian Gulf.

Trump has wanted Japan, South Korea, and Taiwan to join the undertaking, while Alaska Gov. Mike Dunleavy wraps up an Asia trip between March 19 and 30, looking for investors and final buyers.

“Build this pipeline. Build this energy relationship with the United States. It will score a lot of points with President Trump, but frankly, it’s the right thing to do for South Korea,” Fleitz said. “This is a win-win proposal.”

Addressing the forum, South Korea's Deputy Foreign Minister for Political Affairs Chung Byung-won, also addressed the issue of US reciprocal tariffs, saying, “We will do everything we can going forward to develop a win-win formula — one that minimizes the negative impact on us while offering areas where we can contribute to the US.”

dagyumji@heraldcorp.com