Reference News, July 8 report. According to Yonhap News Agency, July 8 report, a South Korean trade expert predicted on Tuesday that if the reciprocal tariff policy proposed by US President Trump is implemented as planned, exports of major products from South Korea may decline significantly in the second half of the year.

Jeong Sang-jik (音), director of the Center for International Trade and Business at the Korea Trade Association, said: "If the tariff policy of Trump's second term is truly implemented, we may witness a significant shrinkage in South Korea's exports to the US in the second half of the year." Jeong made these remarks at a forum hosted by the Korean Economic Forum in Seoul.

He predicted that due to the impact of US tariffs, exports in the automotive and steel industries could fall by 7.1% and 7.2%, respectively, while exports in the auto parts and machinery sectors could drop by 6.5% and 3.8%, respectively, between July and December.

The above prediction was based on a letter published by Trump earlier that day addressed to South Korean President Yoon Suk-yeol. In the letter, Trump stated that the US would impose a 25% tariff on all South Korean products starting August 1.

Jeong warned that high tariffs imposed by the US on South Korean steel, automobiles, and parts could have a widespread impact on South Korean industries. He urged companies to explore proactive strategies such as shifting production to overseas bases or adjusting export prices.

Jeong also called on the government and industry to reduce their heavy reliance on the US market.

He said: "South Korea needs to diversify its export destinations, promote exports to regions such as the EU, ASEAN, and India, and accelerate the transition to high-tech industries such as AI semiconductors, solid-state batteries, electric vehicles, and hydrogen-powered cars." (Translation by Wang Haifang)

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