US to have revealed 25% tariff on 1,300 types of Chinese items… G2 trade war to get fierce
Kwon Dae Gyung | kwon213@ | 2018-04-05 11:13:31
The Korean economy, centered on exporters as the trade war between the US and China is taking a turn for foresee is also seriously hurt. Immediately, the semiconductor and petrochemical sectors, which are the main export industries, took an `emergency`. In particular, there is a pessimistic outlook that if the US tariff bomb line expands and the global tariff rate rises to 20% and it will be one tenth of total exports of USD 573.9 billion last year.
The US Trade Representative on April 3, revealed the 1,300 Chinese export items to impose a 25% tariff. The tariff bomb, which will be applied from the end of May, will put China on a USD 50 billion (KRW 54 trillion) burden. In response, the Commerce Department said, "We will take equal measures on equal strength and scale" one hour after the United States announced the tariff items. Actually, China has levied a 25% tariff on American soybeans and cars this afternoon.
The list, designated by the USTR as a tariff bomb, encompasses all of China`s top 10 key industry development projects, `China Manufacturing 2025`. The list includes high-performance medical devices, biotechnology and pharmaceutical raw materials, industrial robots, telecommunications equipment, advanced chemicals, aerospace, marine engineering, electric vehicles, light-emitting diodes and semiconductors.
To counter this, China is imposing tariffs on US agricultural products, cars and aircraft. China is the second largest importer of US agricultural products in the world, and automobiles are also the second importer, importing USD 10 billion (KRW 11 trillion) last year.
The Korean government and the industry are busy tackling the trade disputes between the United States and China and preparing measures. A government official said, "Global trade is declining due to prolonged trade war between the US and China, and semiconductor, petrochemical, and electrical and electronic industries, which are the main export industries, are expected to hit the market.
However, it is difficult to take measures that the government can take independently of the economic collapse of the two economies.
Experts say that it is important to minimize wavelengths. Professor Huh Yoon Sogang graduated from the Graduate School of International Studies said, "The US action is to block the entry of Chinese products into the country by bypassing the country," he said. "It is difficult to exclude the possibility of imposing tariffs on similar goods in countries other than China. "He said. Professor Chung In-kyoong of Inha University stated, "The countries that suffer the worst most are the South and Taiwan," he said. "We are worried about more damage because the industrial structure is in tie with China."
On the other hand, Professor Jung advised, "In order to prevent the spread of protectionism, we must make a voice in the international community to join forces with similar countries and return to the multilateral trading system." The industry is worried about the worsening of profitability of export companies due to the won depreciation.
By Kwon Dae Gyung kwon213@
[ copyright ⓒ The Digitaltimes ]
The US Trade Representative on April 3, revealed the 1,300 Chinese export items to impose a 25% tariff. The tariff bomb, which will be applied from the end of May, will put China on a USD 50 billion (KRW 54 trillion) burden. In response, the Commerce Department said, "We will take equal measures on equal strength and scale" one hour after the United States announced the tariff items. Actually, China has levied a 25% tariff on American soybeans and cars this afternoon.
The list, designated by the USTR as a tariff bomb, encompasses all of China`s top 10 key industry development projects, `China Manufacturing 2025`. The list includes high-performance medical devices, biotechnology and pharmaceutical raw materials, industrial robots, telecommunications equipment, advanced chemicals, aerospace, marine engineering, electric vehicles, light-emitting diodes and semiconductors.
To counter this, China is imposing tariffs on US agricultural products, cars and aircraft. China is the second largest importer of US agricultural products in the world, and automobiles are also the second importer, importing USD 10 billion (KRW 11 trillion) last year.
The Korean government and the industry are busy tackling the trade disputes between the United States and China and preparing measures. A government official said, "Global trade is declining due to prolonged trade war between the US and China, and semiconductor, petrochemical, and electrical and electronic industries, which are the main export industries, are expected to hit the market.
However, it is difficult to take measures that the government can take independently of the economic collapse of the two economies.
Experts say that it is important to minimize wavelengths. Professor Huh Yoon Sogang graduated from the Graduate School of International Studies said, "The US action is to block the entry of Chinese products into the country by bypassing the country," he said. "It is difficult to exclude the possibility of imposing tariffs on similar goods in countries other than China. "He said. Professor Chung In-kyoong of Inha University stated, "The countries that suffer the worst most are the South and Taiwan," he said. "We are worried about more damage because the industrial structure is in tie with China."
On the other hand, Professor Jung advised, "In order to prevent the spread of protectionism, we must make a voice in the international community to join forces with similar countries and return to the multilateral trading system." The industry is worried about the worsening of profitability of export companies due to the won depreciation.
By Kwon Dae Gyung kwon213@