U.S. President Donald Trump. Yonhap News

U.S. President Donald Trump announced that he plans to announce tariffs on semiconductors and pharmaceuticals soon, as he had previously foreshadowed.

In an interview with CNBC on the 5th (local time), President Trump stated that he plans to announce more item-specific tariffs "next week or so," mentioning semiconductors and pharmaceuticals as target items.

Regarding pharmaceuticals in particular, he said, "Initially, we'll impose a small tariff on pharmaceuticals, but after a year or up to a year and a half, we will increase it to 150%, and then to 250%."

This is interpreted to mean that pharmaceutical companies will be given about a year to a year and a half to move their production facilities located outside the U.S. back to the U.S., after which tariffs will be significantly increased.

In the interview that day, President Trump boasted about the results of trade agreements, saying, "Korea has opened up its country, not only opened its market, but it will be a tremendous business."

He added, "Korea was a closed country, and now suddenly we can sell cars, trucks, and SUVs (Sport Utility Vehicles) to Korea. We are really opening up Korea," he emphasized.

Even before the trade agreement with the U.S., Korea imported American cars, but the U.S. had argued that Korea's automotive safety and environmental standards were non-tariff barriers.

According to the Ministry of Trade, Industry and Energy, Korea has committed through this agreement to recognize American cars that meet U.S. safety standards as also meeting Korean safety standards.

President Trump reiterated his assertion that the investments promised by other countries to lower tariffs are money given to the U.S., not loans that the U.S. has to repay.

When asked by the host, using the European Union (EU) as an example, what would happen if they did not fulfill their promised investments, he replied, "Then they will have to pay a 35% tariff."

"It's a gift. It's not like a loan," he said. "There's nothing to repay. They gave us $600 billion to invest in anything we want."

When pointed out that there are no details in the trade agreement, he emphasized, "The detail is that they are investing $600 billion in anything I want."

Considering President Trump's attitude, it is suggested that he may claim that the $350 billion that Korea has promised to invest is not a loan or loan guarantee, as explained by the Korean government, and that disagreements may arise in the future.

South Korean government delegation negotiating trade with President Trump [Photo courtesy of Secretary of the Treasury Steven Mnuchin.

He also pointed out that India continues to purchase Russian crude oil, supporting Russia's war financing, and announced that because of this, he will significantly increase tariffs on India within the next 24 hours, much higher than the current 25%.

"When energy prices get low enough, Putin (President of Russia) will stop killing people," he argued. "If we can drive energy prices down by $10 a barrel, Putin will have no other choice. Because his economy is bad."

Regarding the prospect of a meeting with Chinese President Xi Jinping, President Trump said, "He asked for a meeting, and if we reach a (trade) agreement, it is very likely that we will meet before the end of the year. If we do not reach an agreement, I will not meet him."

He added, "But we are very close to reaching an agreement. We are doing very well with China," and "My relationship with President Xi is very good. I think we will have a good agreement."

President Trump suggested that he might announce a new Federal Reserve chairman when appointing a successor to former Fed Governor Adriaana Kugler, who recently resigned.

He stated that he is considering four candidates, including former Fed Governor Kevin Warsh and White House National Economic Council Director Kevin Hassett.

Regarding Treasury Secretary Steven Mnuchin, who has been mentioned as a candidate, President Trump said he had asked Mnuchin his intentions the previous night, but Mnuchin expressed his desire to continue as Treasury Secretary.

When asked if he would run for president again in the next election, President Trump replied, "Probably not," but immediately added, "I want to run. My poll numbers are the highest I've ever received."

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