Trump ties low tariffs to market access, threatens higher rates otherwise

By Yasin Gungor

ISTANBUL (AA) - US President Donald Trump said Wednesday he will only reduce tariffs for countries that agree to open their markets to American businesses, threatening higher duties on those who refuse.

"I WILL ONLY LOWER TARIFFS IF A COUNTRY AGREES TO OPEN ITS MARKET. IF NOT, MUCH HIGHER TARIFFS," Trump wrote on social media.

Trump stressed tariffs as a negotiating tool to force market openings, underlining that recent agreements with Indonesia and Japan would have been "impossible" without it.

“I will always give up Tariff points if I can get major countries to OPEN THEIR MARKETS TO THE USA," he said.

He said both Indonesia and Japan had agreed to "COMPLETELY OPEN" their market to US products for the first time.

Trump credited tariff pressure for Japan's market opening, including previously protected sectors such as agricultural products and rice.

Japan agreed Tuesday to invest $550 billion in the US, with America receiving 90% of the profits.

Trump said Japan will also purchase "BILLIONS OF DOLLARS WORTH OF MILITARY AND OTHER EQUIPMENT."

The US and Indonesia on Tuesday finalized a framework trade agreement eliminating 99% of tariffs on US exports, opening markets to American industrial, technology, and agricultural products, officials said.

Trump’s declaration comes as the clock ticks down for the US to impose higher tariffs on countries that have not reached deals with it by an Aug. 1 deadline.

In announcing an earlier deadline, Trump touted “90 deals in 90 days,” but far fewer than that number have actually been announced.