USTR to end public comment on third China tariff list
- 6 years ago
3. I see, and with this escalating trade war, what about Korea? How has it been affected and what should the government do?
Well, China and the U.S. are Korea's top two trading partners, accounting for more than a third of its exports.
This trade war has long been cited as a major downside risk to Korea's economy, given how it is closely tied to the global value chain.
So far, according to the Bank of Korea, Korea's exports in the second quarter posted zero-point-four percent growth, slowing down from 4-point-four percent second-quarter growth last year....as semiconductor exports increased but home appliances,
ships and autos fell sharply.
Korea mainly ships intermediary goods to China, which would be affected by the tariffs when finished goods are exported to the U.S. Also, the slow down in the Chinese economy and global market jitters could hurt Korean exports."
And there are a lot of variables to watch closely.
After declaring a truce in the trade war with Europe in July, the U.S. has just renegotiated its trade deal with Mexico and it is now negotiating with Canada...which could change the terms on agriculture and autos.
For instance, the U.S. and Mexico agreed that 75 percent of the value of vehicles exported to the U.S. would have to come from North American-made parts...which could lead to higher tariffs on auto imports from countries outside of North America.
Korea has hedged trade uncertainties by amending the Korea-U.S. free trade agreement, getting an exemption on steel quotas, agreeing on a 25 percent tariff rate on Korean pickup trucks and doubling South Korea's import cap on U.S. vehicles... but it's not 100 percent certain that it will stay like this as President Trump renegotiates trade deals with other countries and further isolates China.
Experts say, the Korean government and autos and steel exporters should continue their outreach efforts to negotiate with U.S. counterparts to secure Korea's footing.
Well, China and the U.S. are Korea's top two trading partners, accounting for more than a third of its exports.
This trade war has long been cited as a major downside risk to Korea's economy, given how it is closely tied to the global value chain.
So far, according to the Bank of Korea, Korea's exports in the second quarter posted zero-point-four percent growth, slowing down from 4-point-four percent second-quarter growth last year....as semiconductor exports increased but home appliances,
ships and autos fell sharply.
Korea mainly ships intermediary goods to China, which would be affected by the tariffs when finished goods are exported to the U.S. Also, the slow down in the Chinese economy and global market jitters could hurt Korean exports."
And there are a lot of variables to watch closely.
After declaring a truce in the trade war with Europe in July, the U.S. has just renegotiated its trade deal with Mexico and it is now negotiating with Canada...which could change the terms on agriculture and autos.
For instance, the U.S. and Mexico agreed that 75 percent of the value of vehicles exported to the U.S. would have to come from North American-made parts...which could lead to higher tariffs on auto imports from countries outside of North America.
Korea has hedged trade uncertainties by amending the Korea-U.S. free trade agreement, getting an exemption on steel quotas, agreeing on a 25 percent tariff rate on Korean pickup trucks and doubling South Korea's import cap on U.S. vehicles... but it's not 100 percent certain that it will stay like this as President Trump renegotiates trade deals with other countries and further isolates China.
Experts say, the Korean government and autos and steel exporters should continue their outreach efforts to negotiate with U.S. counterparts to secure Korea's footing.