Korea’s exports at risk as global trade tensions continue
- 6 years ago
That is worrisome.
Regarding trade wars and tariffs,... quite a lot has happened in recent weeks.
Can you give us a wrap up of the tariffs that Korea faces?
Yes, first let's look at the steel industry. It is exempt from the Trump Administration's 25 percent tariffs, but it does face a quota limit. Take a look.
As part of the amendment to the Korea- U.S. Free Trade Agreement, Korea's steel exports are under a quota limit of 2-point-6-8 million tons, or 70 percent of what it exported to the U.S. on average between 2015 and 2017.
Korea's steel exports also fall under the EU's provisional safeguard measures, which went into effect last week in retaliation against the U.S. tariffs on steel and aluminum.
As the number four steel exporter to the EU and the third largest steel exporter to the U.S., Korean big steelmakers could be hurt by the tariffs too, in addition to smaller ones that mainly export steel pipes to the U.S.
Auto and auto parts are another big concern.
The Trump Admiministration started its probe into auto imports in May, and could impose tariffs of up to 25 percent, just like steel, if it concludes that auto imports hurt its national security under section 232.
In a surprise move, the U.S. and the EU made a trade truce this week,... agreeing to stop new tariffs, including those on autos, while they negotiate over trade.
"We don't know President Trump's exact intention. But it is at least as likely that the U.S. is reducing trade tensions with its traditional allies in order to improve its leverage against China, giving exemptions to its allies on tariffs. But it could also mean more pressure on Beijing from now on. So whether it's good news for Korea,... we'll have to see."
But what is sure for now is that the U.S. and China both imposed 25 percent tariffs on 34 billion dollars' worth of imports, which went into effect July 6th.
And this 25 percent tit-for-tat tariff is just the beginning, with Washington planning on imposing its second round of tariffs on 16 billion dollars' worth of Chinese goods soon.
Regarding trade wars and tariffs,... quite a lot has happened in recent weeks.
Can you give us a wrap up of the tariffs that Korea faces?
Yes, first let's look at the steel industry. It is exempt from the Trump Administration's 25 percent tariffs, but it does face a quota limit. Take a look.
As part of the amendment to the Korea- U.S. Free Trade Agreement, Korea's steel exports are under a quota limit of 2-point-6-8 million tons, or 70 percent of what it exported to the U.S. on average between 2015 and 2017.
Korea's steel exports also fall under the EU's provisional safeguard measures, which went into effect last week in retaliation against the U.S. tariffs on steel and aluminum.
As the number four steel exporter to the EU and the third largest steel exporter to the U.S., Korean big steelmakers could be hurt by the tariffs too, in addition to smaller ones that mainly export steel pipes to the U.S.
Auto and auto parts are another big concern.
The Trump Admiministration started its probe into auto imports in May, and could impose tariffs of up to 25 percent, just like steel, if it concludes that auto imports hurt its national security under section 232.
In a surprise move, the U.S. and the EU made a trade truce this week,... agreeing to stop new tariffs, including those on autos, while they negotiate over trade.
"We don't know President Trump's exact intention. But it is at least as likely that the U.S. is reducing trade tensions with its traditional allies in order to improve its leverage against China, giving exemptions to its allies on tariffs. But it could also mean more pressure on Beijing from now on. So whether it's good news for Korea,... we'll have to see."
But what is sure for now is that the U.S. and China both imposed 25 percent tariffs on 34 billion dollars' worth of imports, which went into effect July 6th.
And this 25 percent tit-for-tat tariff is just the beginning, with Washington planning on imposing its second round of tariffs on 16 billion dollars' worth of Chinese goods soon.