Trump: "The tariff on semiconductors may be higher than that on cars!"

On October 15, the Korean media "Dong-A Ilbo" published an article stating that US President Donald Trump recently said, "Semiconductors or pharmaceuticals can pay higher tariffs. The profit margin of semiconductors and pharmaceuticals is higher than that of cars." The US has started to impose a 15% tariff on Japanese automobiles and auto parts, which is 10 percentage points lower than the 25% tariff imposed on related products from South Korea. In this context, President Trump has also shown the will to impose high tariffs on another major export product of South Korea, semiconductors.

When asked by journalists, "If a compromise is reached to reduce the car tariff from 25% to 15% for countries like Japan, would you worry about losses for American car companies?" President Trump replied, "I have made no compromises." In fact, if high tariffs are applied to semiconductors, the blow to South Korea would be even greater. Because the second largest product that South Korea exports to the US is semiconductors. In the US-South Korea trade negotiations, the US has indicated the principle of most-favored-nation treatment in semiconductors and pharmaceuticals, but has not yet signed an agreement to confirm this principle.

Additionally, the US Department of Commerce has initiated procedures to expand the scope of tariffs, including steel, aluminum and their derivatives currently subject to a 50% tariff. The US Department of Commerce is currently collecting opinions from the industry to explore whether to add more tariff items.

At the same time, the head of the Trade Negotiation Bureau of the Ministry of Industry, Trade and Energy of South Korea, Yeo Han-gyeong, met with US Trade Representative Jaime S. Griles during further negotiations in the US. It was reported that there are still differences between the two countries on how to implement the $350 billion investment by South Korea into the US.

Original: www.toutiao.com/article/1846021423849610/

Statement: This article represents the views of the author himself.