Korean media: After Japan, US car tariffs to EU also reduced to 15%... South Korea remains at 25%

US Department of Commerce announced ... "applicable retroactively from August 1", 15% tariff on Japanese cars has already taken effect since the 16th

On the 24th, the US Department of Commerce announced that, according to the trade agreement reached with the EU (EU) in July, the Most Favored Nation (MFN) treatment would be applied to European cars and parts, reducing the 25% tariff levied by category by 12.5%p to 15%. The Department stated that this content will be published in the Federal Register on the 25th, and will be applicable retroactively from August 1. The 15% tariff after a reduction of 12.5%p on Japanese cars started to apply from the 16th, while Korean cars, which are still involved in trade negotiations, continue to be subject to a 25% tariff. As cars are the core product of South Korean exports to the US, their price competitiveness is clearly showing red lights.

On August 21, the White House issued a joint statement between the US and the EU stating that it decided to apply a maximum tariff of 15% to almost all goods exported by the EU to the US, including cars. This release by the Department of Commerce is a follow-up measure. The EU had frequently complained: "The US did not fulfill the trade agreement in practice." On that day, the Department said: "The US-EU agreement is a specific example of the determination to promote fair, balanced, and mutually beneficial trade and investment," and "this release reflects the joint decision of both sides to eliminate trade imbalances and fully tap into the potential of integrated economic strength."

After Japan, as European cars also start to apply a 15% tax rate, the pressure on South Korea to complete negotiations with the US will sharply increase. Not only for cars, but Trump also announced that he would impose a maximum tariff of 100% on chips. In July, the South Korean government claimed: "The US promised to grant MFN treatment when taxing chips and pharmaceuticals," but the US has not yet introduced binding measures on this. Currently, South Korean President Yoon Suk-yeol is visiting the US to attend the United Nations General Assembly in New York, and he said: "We cannot unconditionally accept the US demands."

Source: Chosun Ilbo

Original: www.toutiao.com/article/1844209264564235/

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