Washington, 15 February (IANS). US President Donald Trump will announce tariffs on imported cars in early April, which could be a major setback for the South Korean automotive industry.
The US President is going to announce an auto tariff on 2 April. Trump tariffs are used as an important tool to achieve other policy goals, including reducing US trade deficit, promoting domestic manufacturing and preventing the flow of unauthorized migrants and drugs.
Between Trump’s tariff-based policy, there is an increasing fears that Asia’s fourth largest economy could be targeted by his administration.
This is because South Korea’s trade surplus with the United States reached $ 55.7 billion with the United States last year, according to the report of the Yonhap news agency.
Trump asked his colleague, “I think we are going to do it on April 2. Is this correct?” In response to which his colleague said, “This is correct.”
The US President did not explain in detail whether he would announce the tariff on April 2 or he would become effective on the same day.
The US is a top auto export market for South Korea. Out of the total car exports of South Korea last year, exports to the US were $ 34.7 billion or 49.1 percent. No American tariffs have been imposed on Korean cars since 2016 under the bilateral Free Trade Agreement.
Auto tariffs have been announced at a time when the Trump administration is emphasizing on putting ‘reciperook’ tariffs on American imports, which will match the tariffs imposed by other countries on American goods.
Earlier, a plan to impose 25 percent tariff on steel and aluminum imports has already been announced from March 12, while new tariffs are being considered on chips and pharmaceuticals.
South Korean officials are closely monitoring Trump’s tariff declarations, as he is worried that the policy coordination with Washington slowed down with Washington amid political uncertainty in Sol due to President Union Suk Yol’s effort in early December It is possible
South Korean Foreign Minister Cho Tae-Yur has said that he is planning to discuss the tariff issue with US Secretary of State Marco Rubio during an international security stage in Munich, Germany on Saturday.
Trump has already imposed a 10 percent tariff on all the Chinese goods coming to the US, while he has temporarily stopped imposing 25 percent tariffs on Canada and Mexico, as both countries smuggle intoxicating drugs on their borders with America Has agreed to increase efforts to stop.
-IANS
SKT/KR
