Trade Cases

South Korea Concedes, Avoids Tariffs
Written by Sandy Williams
March 27, 2018
The U.S. and South Korea have reached an agreement on amendments to the KORUS agreement. In return for exemption from Section 232 tariffs, Korea will reduce its steel exports to the U.S. by 30 percent to 2.68 million tons annually.
In addition, Korea agreed to increase automotive imports from the U.S. to 50,000 vehicles per U.S. manufacturer from the 25,000 vehicles currently permitted. The imports will meet U.S. safety standards, and not necessarily Korea’s stricter environmental and safety standards.
Another change may quash plans by Korean auto manufacturer Hyundai to introduce a truck model in the U.S. South Korea has agreed to a 20-year extension of the phase out of a 25 percent tariff on trucks. Under the existing agreement, the tariff would have ended in three years; the new agreement will extend the termination of the tariff until 2041.
Treasury Secretary Steve Mnuchin said the strategy of using the tariffs as leverage in the negotiations worked, calling it an “absolute win-win.”
South Korea remained firm on its agricultural tariffs. Korea’s trade minister Kim Hyun-chong stressed during a press conference that “there will be no further opening of agricultural markets and no changes to the tariffs that had already been lifted.”
The deal was viewed as the best that South Korea could hope for, but more trade pressure is likely from the Trump administration.
“If President Trump becomes a two-term president … I believe there will be continuous (trade) risks during that time,” Trade Minister Kim said.
“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,” said Wonmog Choi, professor of law at Ewha Womans University, in a comment to Reuters.

Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases

SMU Survey: Less support seen for Trump tariff policies
Meanwhile, an increasing number think it's too early to say whether the penalties are going to bring more manufacturing to the US.

CRU: USW seeks exclusion for Canada from Trump’s tariffs
The union is also urging stronger enforcement against countries such as China which break trade rules, and a coordinated Canada-US strategy to protect union jobs across the North America

Price on trade: A lot happened last week – and it wasn’t all about tariffs
Should foreign investment be allowed to reshape the American steel Industry? Not to be lost in the recent on-again-off-again tariff frenzy, Nippon Steel’s proposed takeover of U.S. Steel has also found itself in President Trump’s crosshairs when it comes to trade and industrial policy. Nippon Steel initially announced its nearly $15-billion bid for U.S. Steel […]

Trump signs executive order aimed at making US shipbuilding ‘great again’
President Trump on Wednesday signed an executive order meant to breathe new life into American shipbuilding and curb Chinese dominance in the sector.

Trump still against selling USS to Japanese firm: Report
Despite ordering a new review of Nippon Steel’s bid for U.S. Steel, President Trump said he is still against selling USS to a Japanese company, according to media reports.