Here we go again.
President Trump threatened to hike tariffs on goods from South Korea to 25% from 15%, citing in a Truth Social post what he said was the failure of the country’s legislature to codify the trade deal the two nations reached last year, a failure which was obvious from miles away as the terms of the trade deal require Korea to invest hundreds of billions – which it doesn’t have – in the US.
The new rate would apply to autos, lumber, pharmaceutical products and “all other Reciprocal TARIFFS,” he wrote in a social media post. It probably would not apply to memory chips which are already the most expensive thing on plant earth, at least until the RAM producing cartel starts to, well, producing RAM again.
The move, if implemented, could have wide-ranging effects on major South Korean companies that export to the US, such as Hyundai Motor.
The USDKRW gapped up 0.7% to 1452 on the news, amid thin liquidity before the local market open.
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