South Korea avoids Trump's tariffs over US partnership
Photo: US President Donald Trump (Getty Images)
South Korea has offered the US a strategic partnership in shipbuilding to avoid the threat of 25% tariffs on its exports. The agreement could be a key step in maintaining Seoul's position in the US market ahead of the August 1 deadline, according to Bloomberg.
Indeed, South Korea hopes to avoid Trump's tariffs, as they could significantly harm its economy. That is why Korea is ready to invest in the development of American shipbuilding, providing support through technology and investments.
This proposal has a catchy name - Make American Shipbuilding Great Again.
Currently, the South Korean Ministry of Industry is not commenting on the situation. But the president's office has already confirmed that the US is interested, and both sides are looking for common terms for an agreement.
In addition to shipbuilding, other important topics are also being discussed in the negotiations: opening the Korean market to American agricultural products, as well as creating a large investment fund similar to the one already in place between the US and Japan. But it's not all easy and simple here — earlier attempts to allow American meat and rice into the market sparked massive protests in Korea.
At the same time, everyone understands that there is little time left. If an agreement cannot be reached, Korea will face harsh tariffs starting August 1, as has already happened with the EU (15% on most goods, including cars) and Japan.
Final negotiations are ahead. South Korea's finance and foreign ministers are already preparing to meet with their American counterparts this week. Seoul hopes that the new agreement will avoid economic shock and strengthen strategic cooperation between the countries.
Last year, exports accounted for more than 40% of the country's GDP, so any restrictions for South Korea pose a serious risk.
US-EU trade agreement
On July 27, US President Donald Trump and European Commission President Ursula von der Leyen met at the White House.
Afterwards, Trump announced a new large-scale trade agreement with the European Union. Under the agreement, Europe will purchase $750 billion worth of American energy resources and invest an additional $600 billion in the US economy.
In addition, the EU will purchase hundreds of billions of dollars worth of American military equipment.
