South Korea Trade Deal; Concessions Made To Preserve US trade deal

South Korea Trade Deal

Editor: Johnathan Meyers | Tactical Investor

South Korea Trade Deal

South Korea Trade Deal: Concessions are made

Seoul has agreed to cut steel exports to the U.S. by 30 per cent and accepted extended tariffs on South Korean pick-up trucks to secure a revised trade deal with the U.S. and escape Washington’s steel duties, the government admitted on March 26.

South Korea and the United States are security allies both threatened by the nuclear-armed North but since taking office U.S. President Donald Trump repeatedly threatened to tear up their free trade agreement, raising concerns about undermining the economic leg of their alliance.
Seoul will further open its auto market to U.S. manufacturers while accepting a 20-year extension until 2041 to a 25 per cent U.S. tariff on Korean pick-up trucks. On steel, South Korea accepted an annual export quota of 2.68 million tons to the U.S., 70 per cent of its average shipments in the last three years.

In exchange it will be exempted from the U.S. steel tariffs, trade minister Kim Hyon-Chong told reporters. He described the negotiations as “fierce” but insisted: “As a negotiator, I can say it was a negotiating table where I had nothing to feel inferior about.” Read more

South Korea Trade Deal: Unlike China South Korea choose a deal over rhetoric

South Korea has agreed to cut its steel exports to the US to escape tariffs but expects more turbulence in its relationship under President Donald Trump.  Seoul has agreed to a quota for steel exports to the US 30 per cent below current sales and accepted extended tariffs on pick-up trucks to secure a revised trade deal with Washington and escape its steel duties, the government admitted Monday.

That amount will be exempted from the US steel tariffs, trade minister Kim Hyon-chong told reporters, but any excess will be liable to penalties.

He described the negotiations as “fierce” but insisted: “As a negotiator, I can say it was a negotiating table where I had nothing to feel inferior about.”

But Sogang University international trade professor Heo Yoon told AFP: “The US got what it wanted.” Read more

Trade Deal With South Korea Secured

The deal, which the White House could announce on Tuesday, would come at a moment of heightened tension on the Korean Peninsula as the Trump administration prepares to hold talks with North Korea’s leader, Kim Jong-un. Ties between Washington and Seoul had become strained over disagreements about trade, including Mr Trump’s steel tariffs, and threatened to further complicate the already fraught discussions with North Korea.

“I think the strategy has worked, quite frankly,” Steven Mnuchin, the Treasury secretary, told Fox News in an interview on Sunday. “We announced the tariff. We said we were going to proceed. But, again, we said we’d simultaneously negotiate.”

“I think this is an absolute win-win,” he added, referring to the agreement with South Korea.

The South Korean government announced the deal on Monday. Read more

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