Tag: tariffs

I guess we will see next week if the ROK can strike a deal or not with the Trump administration. What will be interesting is if a deal is struck will the likely Lee Jae-myung administration in two months stick to it?:

The United States will engage in trade negotiations with South Korea next week, Treasury Secretary Scott Bessent said Monday, stressing the “first mover advantage,” as countries are striving to strike deals with the U.S. to minimize the impact of President Donald Trump’s tariff policy on their economies.

In a Bloomberg interview, Bessent touched on plans for upcoming negotiations with South Korea and Japan. Earlier this month, Trump imposed steep “reciprocal” tariffs on the two allies and dozens of other countries but later placed a 90-day pause on the new tariffs.

“We had Vietnam in last week. We (have) Japanese in on Wednesday. … South Korea next week,” he said. “So it’s going to move fast.”

The secretary underscored there will be a “first mover” advantage as Japanese Prime Minister Shigeru Ishiba told parliament Monday (Tokyo time) that Japan will not make compromises for the sake of quickly wrapping up tariff talks with the U.S.

“I think there will be advantage to our allies, especially a first mover advantage,” he said. “Usually, the first person who makes a deal gets the best deal.”

Yonhap

You can read more at the link.

Trump has executed his usual playbook of making an extreme demand and then settling on what he really wanted and everyone claims he backed down:

 U.S. President Donald Trump on Wednesday lowered “reciprocal” tariffs on South Korea and other trading partners to 10 percent in what he called a pause that will last for 90 days, while increasing duties on China to 125 percent following China’s retaliatory move.

In a social media post, Trump made the announcement as reciprocal tariffs went into effect on the day, with dozens of countries striving to negotiate deals over new levies. Last week, his administration unveiled 25 percent tariffs on South Korea, 24 percent on Japan and 20 percent on the European Union, to name a few.

Yonhap

You can read more at the link.

If Trump wants to increase tariffs on South Korea I don’t think it really matters who the leader is:

Korea’s ongoing leadership crisis, triggered by President Yoon Suk Yeol’s attempt to impose martial law, is feared to leave the country vulnerable to potential new tariffs from the incoming Donald Trump administration during upcoming trade and economic negotiations, industry officials said Sunday.

Yoon is suspended from his duties following the National Assembly’s vote on Saturday to impeach him over his short-lived imposition of martial law on Dec. 3. Prime Minister Han Duck-soo has stepped in as acting president.

Officials from the nation’s business community expressed concerns that Korea may have weaker negotiating power under the presidency of the interim head of state.

“Every nation engages in a tight tug-of-war with the United States to minimize any damages from the ultra-protectionist stance of Trump,” an official from a major manufacturing firm here said.

“But it becomes harder for Korea to do so on an equal footing due to the absence of the state leader.”

Korea Times

You can read more at the link.

I wonder if the ROK will get auto tariff relief when they decide to pay the amount President Trump has asked them to pay for the upkeep of the US-ROK alliance?

South Korea’s Trade Minister will visit the U.S. next week to call for the country’s exemption from potential U.S. tariffs on auto imports. 

Minister Yoo Myung-hee announced the plan in a meeting with reporters on Tuesday, emphasizing that South Korea cannot be complacent or sit idle on the issue. 

She plans to leave for the U.S. on Monday and meet with officials from the White House, Commerce Department, US Trade Representative as well as members of Congress. 

U.S. President Donald Trump has until Friday of next week to decide whether auto import tariffs are necessary for national security under Section 232 of the Trade Expansion Act. If a conclusion is made that such a measure is needed, the U.S. can impose tariffs of 25 percent on imported cars.

KBS World Radio

Steel products are stored at a factory in Dangjin on the west coast on Feb. 19, 2018. South Korean steelmakers are bracing for a U.S. move to slap high import tariffs on steel products from South Korea and a handful of other countries. (Yonhap)