[ISSUE TALK] Global tariff war escalates... while South Korea's economy struggles
- 6 years ago
EU 철강 세이프가드 발동, 수출길 막힌 한국 경제 - 신상협 교수 대담
To discuss these measures and other issues on the economy, we have with us Professor Shin Sang-hyup from Kyunghee University. Thank you for coming today Professor.
My pleasure.
1 - So the EU has now come out with its own steel tarrifs. It is perhaps what everybody had expected and feared would happen when the U.S. started this tarrif war earlier this year. What is your reaction to this latest development?
2 - South Korean steel companies are of course concerned (although Posco and Hyundai said that for now it should be ok). How much could it hurt Korean steel companies?
3 - The U.S. also held a hearing on imposing tariffs on imported cars as well. Nothing has been decided, but if strong measures do come in, that really could hurt South Korea, right?
4 - Japan has signed a landmark free trade agreement with the EU. Can we consider this a direct response to the U.S. protectionist trade policies?
4a - As well as with Japan, the EU has also started FTA deals with Australia and New Zealand. In Asia, 16 countries are now trying to continue to build up the Regional Comprehensive Economic Partnership (RCEP). This seems to run counter to the U.S.'s protectionist policies. What do you make of this trend?
5 - In South Korea, it is a very nervy time. The government has lowered its estimated growth rate for this year from 3-percent to 2.9-percent. How significant is that?
5a - What are the main factors behind South Korea's struggling economy?
6 - South Korea announced 4 trillion won ($3.54 billion) of extra fiscal spending and tax cuts this week to boost economic growth. But over the last two years the government has tried similar efforts and those haven't really had much effect. Why do you think that is, and could the 4 trillion won have any effect this time?
7 - The U.S. seems to be enjoying a healthy economy at the moment. This week, the Fed released its Beige Book and it generally seemed to say the economy is healthy, although it mentioned some concerns about trade tariffs. What do you make of the state of the U.S. economy?
8 - Fed Chair Jerome Powell has also backed healthy growth for the U.S. and has said interest rates should be raised. The U.S. has already raised rates twice this year. How does this affect South Korea and what does South Korea have to do now?
9 - Trump has criticized Powell and the Fed for raising interest rates. That goes against 20 years of tradition, where the White House doesn't comment on the Fed's actions, to preserve its independence. What should be made of Trump's comments?
10 - There are concerns that South Korea's economy will struggle in the second half of this year. Is that how you see it as well, and what can be done about it?
Thank you for your time.
To discuss these measures and other issues on the economy, we have with us Professor Shin Sang-hyup from Kyunghee University. Thank you for coming today Professor.
My pleasure.
1 - So the EU has now come out with its own steel tarrifs. It is perhaps what everybody had expected and feared would happen when the U.S. started this tarrif war earlier this year. What is your reaction to this latest development?
2 - South Korean steel companies are of course concerned (although Posco and Hyundai said that for now it should be ok). How much could it hurt Korean steel companies?
3 - The U.S. also held a hearing on imposing tariffs on imported cars as well. Nothing has been decided, but if strong measures do come in, that really could hurt South Korea, right?
4 - Japan has signed a landmark free trade agreement with the EU. Can we consider this a direct response to the U.S. protectionist trade policies?
4a - As well as with Japan, the EU has also started FTA deals with Australia and New Zealand. In Asia, 16 countries are now trying to continue to build up the Regional Comprehensive Economic Partnership (RCEP). This seems to run counter to the U.S.'s protectionist policies. What do you make of this trend?
5 - In South Korea, it is a very nervy time. The government has lowered its estimated growth rate for this year from 3-percent to 2.9-percent. How significant is that?
5a - What are the main factors behind South Korea's struggling economy?
6 - South Korea announced 4 trillion won ($3.54 billion) of extra fiscal spending and tax cuts this week to boost economic growth. But over the last two years the government has tried similar efforts and those haven't really had much effect. Why do you think that is, and could the 4 trillion won have any effect this time?
7 - The U.S. seems to be enjoying a healthy economy at the moment. This week, the Fed released its Beige Book and it generally seemed to say the economy is healthy, although it mentioned some concerns about trade tariffs. What do you make of the state of the U.S. economy?
8 - Fed Chair Jerome Powell has also backed healthy growth for the U.S. and has said interest rates should be raised. The U.S. has already raised rates twice this year. How does this affect South Korea and what does South Korea have to do now?
9 - Trump has criticized Powell and the Fed for raising interest rates. That goes against 20 years of tradition, where the White House doesn't comment on the Fed's actions, to preserve its independence. What should be made of Trump's comments?
10 - There are concerns that South Korea's economy will struggle in the second half of this year. Is that how you see it as well, and what can be done about it?
Thank you for your time.