US President Trump says he's boosting South Korea tariffs after threat at Canada on China deal. Demands upfront $350 billion cash investment and Nuclear ship sale deal indirectly without mentioning the key details in his warming. It seems world cam’t live a single day without tariff threat it seems.
President Trump said he was increasing tariffs on goods from South Korea, accusing the country of "not living up to its Deal" with the US. Tariffs on goods from South Korea will jump back to 25%, from 15%.
Financial Risk of Giving $350 Billion Demand: A central pillar of the deal involves South Korea investing $350 billion cash into the U.S. economy. South Korean lawmakers and experts argue that paying this amount especially if required "upfront" in cash as suggested by Trump is realistically unmanageable and could trigger a national financial crisis by draining the country's foreign exchange reserves and destabilizing the won.
Currency - Unlike Japan, which finalized a $550 billion deal, South Korea has a much smaller currency. Experts warn that such a massive outflow of dollars to fund U.S. projects would overwhelm domestic markets and cause the won to plunge. In short, Inflation like Iran.
Resistance: Opposition parties have raised concerns that the deal, negotiated by an administration under heavy U.S. pressure, lacks fairness and would unfairly bind future governments.
Recent Tensions: Frictions were increased by a U.S. immigration raid at a Hyundai-LG battery plant construction site in Georgia, where nearly 300 South Koreans were chained and detained.
Nuclear Submarine: South Korea seeks U.S. approval to develop nuclear-powered submarines. A major point of contention is whether these submarines would be built in South Korean shipyards or U.S. shipyards. We all know Trump won’t let South Korea to build anything.
"Because the Korean Legislature hasn't enacted our Historic Trade Agreement, I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15% to 25%.” -
$TRUMP #Tariffs