Trump announces deal to impose 15% levy on South Korea
President Donald Trump said the US will receive a 15% tariff from South Korea, which the US calls the “complete and complete trade agreement”.
It comes only one day before August 1 to reach the US to reach agreements with the United States or to be hit with higher tariffs. South Korea would have faced 25% tax if he hadn’t made an agreement.
After Japan, a key opponent in automobile and manufacturing industries on Seoul, this week, it provided a 15% tariff ratio this week.
In the US Seoul Invest, which will invest in $ 350 billion ($ 264.1 billion), was successfully launched in South Korea, especially last year, considering the US record trading surplus of at least $ 56 billion.
The 15 % tariff ratio will cover both cars and semiconductors, two of Seoul’s main exports to the USA.
However, the other major winners for South Korea, Steel and Aluminum, will be taxed by 50%in parallel with the global price determined by President Trump.
However, South Korean leader Lee Jae Myung praised the agreement by saying that it would put its country on an equal or better ground compared to other countries.
A victory for South Korea is that it does not have to cross the key red lines, and that it will not further open rice and cattle markets to US imports.
Seoul had strict controls on how much rice and what kind of beef could be imported to protect the agricultural industry, and farmers planned to protest whether these rules were relaxed.
South Korea for $ 350 billion promised to invest in the US, and $ 150 billion will help the United States build ships, including warships.
This was the center of South Korea’s strategy. At a time when the US shipbuilding and navy has decreased, it has a developing shipbuilding industry that builds more ships than other countries other than China.
By helping the US in this arena, the US relieves security concerns while supporting its own industry.
Apparently, it is seen that South Korea will come to the United States in the form of money that has not yet been delivered to the United States – money to help the United States produce cars, semiconductor and batteries from electric vehicles.
This agreement also does not touch the South Korea’s military alliance with the United States and Washington spends South to defend North Korea.
In the past, President Trump threatened to withdraw US troops from South Korea unless he paid more for this regulation.
This is a threat hanging on Seoul’s head, and the negotiators thought of trying to solve this next to the tariffs.
However, these negotiations will now take place when President Lee visits Washington within two weeks for a summit with President Trump, that is, Seoul may have to offer too much money.
Since he returned to office in January, Trump imposed a series of import taxes for goods from other countries and threatened more.
He argues that these tariffs will increase American production and protect things.
However, the variable international trade policy threw the world economy into chaos, and critics warned that tariffs make products more expensive for US consumers.
Jake Kwon’s additional reports in Seoul
