Read the full story in “The Korea Times”
The plot thickens for Korean manufacturers navigating the Trump administration. Last week, President Trump declared new tariffs on foreign steel and aluminum that is causing controversy domestically and abroad. Imported steel will have a 25% tariff, and aluminum will have a 10% tariff. This is following an advisory from the US Commerce Department. Although this will certainly hurt Korean manufacturers, especially mid-tier players, they avoided the worst case scenario – a 53% tariff on 12 countries including Korea – that was also proposed as a solution by the Commerce Department.
This move has been met with much criticism, even fro
m US manufacturers, who despite benefitting the most from it still are not sure if it will be a net gain amidst worries that prices will rise too high. Some worry that US manufacturers wont be able to meet the needs of the market. All that is for sure from this move is that the US is further distancing itself from trade partners, and no one is quite sure whether this will help.
This article does a great job explaining the rationale for this decision and discussing the possible outcomes, from a diplomatic and economic point of view. It is always interesting to read about these issues from another country’s media, given how much it is discussed in the states. This will certainly be a story to follow.
http://www.koreatimes.co.kr/www/biz/2018/03/367_245020.html
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