05:02 GMT +323 April 2018
Listen Live
    U.S. President Donald Trump gives out pens he used to sign presidential proclamations placing tariffs on steel and aluminum imports to workers from the steel and aluminum industries at the White House in Washington, U.S. March 8, 2018

    Trump Amends US-South Korea Trade Deal to Advantage of American Producers

    © REUTERS / Leah Millis
    US
    Get short URL
    113

    US President Donald Trump imposed tariffs on some metal imports into the country in a bid to force the US’ trading partners to renegotiate trade deals in exchange for exemptions from the trade protectionist measures. Canada and Mexico both immediately received exemptions from the steel and aluminum tariffs earlier this month.

    The US and South Korea agreed to tweak the US-Korea Free Trade Agreement (KORUS) on Monday, with Washington now imposing quotas on South Korean steel but agreeing not to levy its 25 percent steel tariff, making South Korea the first country to receive an indefinite exemption.

    Trump has been very critical of the previous trade deal, which he described as “horrible,” and even threatened to terminate.

    “We had heated discussions. The latest agreement removed two uncertainties. If President Trump becomes a two-term president… I believe there will be continuous [trade and economic] risks during that time,” South Korean Trade Minister Kim Hyun-chong said at a media briefing in Seoul today, referring to the renegotiation of the US-Korea Free Trade Agreement (KORUS) and the continued threat of more trade protectionist policies coming into effect over the coming years.

    The revised deal will reportedly improve “market access” for US carmakers, as part of Trump’s wider economic plan to reduce the US’ deficit in international trade.

    READ MORE: China Warns US of 'Serious Consequences and Negative Impact' of Trade War

    Concerns over Trump’s use of trade protectionist policies have been voiced repeatedly – especially by the EU and China – and were once again expressed by a South Korean academic. 

    “This leaves a bad precedent of exchanging steel tariffs — which is a breach of international trade law — for a legitimate free trade agreement, in negotiations,” Wonmog Choi, a law professor at Ewha Womans University was quoted as saying by the Reuters news agency.

    Despite the criticism, Trump will continue to offer exemptions to trade partners and allies in a bid to secure favorable international trading conditions for US exporters. 

    The tariffs – 10 percent on aluminum imports and 25 percent on steel imports – were imposed by Trump on March 8 to protect “US jobs” and the nation’s metal industry, which he warned was at risk of being destroyed by foreign competition, especially from intense Chinese competition.  

    Related:

    Trump's Tariff Plan May Shatter Pillars of the World Trade Order – Academic
    Trump Tariff: Trade War Against the World
    House Speaker Ryan Urges Trump to Narrow New Tariff Policy on Metal Imports
    Trump Tariff Plan Would Kill Steel Jobs in America - Republican Senator
    Trump's Top Economic Adviser to Resign Over Tariff Rift - Report
    Trump Transition Team Considers Possibility of 5%-Tariff on Imports to US
    House Majority Leader Says Won't Back Trump 35% Tariff for Companies Leaving US
    Tags:
    tariffs, quotas, trade, Trump Tariffs, South Korean government, US government, Kim Hyun-chong, Donald Trump, Mexico, Canada, United States, Seoul, South Korea
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik
    • Сomment