New U.S. Tariffs Could Cancel Korea Trade Pact
South Korea is likely to scrap the trade agreement worked out with the U.S. earlier this year if the Trump administration imposes new import taxes on all foreign-made cars, says Bloomberg News.
#economics
South Korea is likely to scrap the trade agreement worked out with the U.S. earlier this year if the Trump administration imposes new import taxes on all foreign-made cars, says Bloomberg News.
The head of Korea’s majority political party says it would be “highly irrational” for the U.S. to include Korea in the 25% tariff the Trump administration has threatened to impose on all imported vehicles.
The so-called Korus pact doubles to 50,000 the number of vehicles each U.S. carmaker can sell in Korea without modifying them to suit Korean safety standards.
The Korus agreement hasn’t yet been signed into law. But Bloomberg says Korea’s parliament isn’t likely to ratify the accord if the White House opts to include Korea in the new round of tariffs. The Trump administration is expected to announce a decision on those taxes no later than February.
RELATED CONTENT
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
On The German Auto Industry
A look at several things that are going on in the German auto industry—from new vehicles to stamping to building electric vehicles.
-
Report Forecasts Huge Economic Upside for Self-Driving EVs
Widespread adoption of autonomous electric vehicles could provide $800 billion in annual social and economic benefits in the U.S. by 2050, according to a new report.