Impact of Trump's tariff implementation on global supply chain?

Welcome to Within The Frame, where we bring the most pressing issues across the globe into focus, I'm Kim Mok-yeon.

As President Trump intensifies his aggressive trade policies, the recent announcement of a 25% tariff on steel and aluminum imports marks a significant shift in U.S. economic strategy.

The latest announcement has sparked concerns over potential repercussions for global trade.

South Korea's Acting President Choi Sang-mok has vowed to roll out a record 360 trillion won in trade policy financing to assist exporters facing increasing challenges.

In Within The Frame today, we explore the rationale behind the U.S. administration's decision to target steel and aluminum first, the potential for further reciprocal tariffs, and the wider impact on industries such as automobiles and semiconductors.

To provide deeper insight into these pressing issues, we are joined by Jeff Moon, President of China Moon Strategies, LLC, and former Assistant US Trade Representative for China via Zoom. Welcome.

Also joining us is Yang Jun-sok, Professor of Economics at the Catholic University of Korea. Great to have you.

(MOON) 1. So let's start with Mr. Moon, On March 12, President Trump officially announced a 25% tariff on steel and aluminum products imported into the United States. Why were steel and aluminum selected as the first targets for "item-specific tariffs"? Is this aimed at China?

(YANG) 2. If we go back to Trump's first term, when steel tariffs were also imposed, South Korea was granted an exemption for a certain quota. However, this time the abolition of the quota system has been included, which is expected to affect the domestic steel industry. Professor Yang, what measures can be taken to minimize the damage to Korean steel companies?

(MOON) 3. Alongside steel and aluminum tariffs, President Trump announced that he would calculate and impose reciprocal tariffs based on the "tariff and non-tariff barriers of each country." Mr. Moon, what impact could the imposition of reciprocal tariffs have on the global trade order?

(YANG) 4. The Trump administration plans to review the situation in each country by April 1 before determining and implementing country-specific tariff rates. Prof.Yang, What "non-tariff barriers" in South Korea do you think President Trump might target?

(MOON) 5. Meanwhile, President Trump has also particularly pinpointed value-added tax (VAT) as a major focus in the trade war. What is the reason behind this Mr. Moon?

(YANG) 6. The U.S. has stated that there will be no exceptions to tariff impositions, even for allies or countries with free trade agreements (FTA). Since the specific details of implementation have not yet been disclosed, and there is still time before the early April enforcement, do you see any room for negotiations Prof.Yang? What possible responses could be taken?

(YANG) 7. And just one day after officially announcing reciprocal tariffs, President Trump announced new tariffs on automobiles too. Given that these are South Korea's top export to the U.S.,professor how significant do you expect the impact to be on Korean car exports?

(MOON) 8. As for tariffs on semiconductors, there seem to have been no announcements yet. There is an opinion that imposing semiconductor tariffs would not be beneficial to the U.S. due to the high demand and potential cost increases in the American market. Mr.Moon, what is the likelihood of semiconductor tariffs being implemented?

(MOON) 9. As the U.S. moves forward with its tariff policies, other countries around the world are also responding swiftly. Some analysts suggest that these tariffs are less about raising trade barriers and more about leverage in negotiations to gain a strategic advantage. Mr.Moon, What are your thoughts on this perspective?

(YANG) 10. On the 17th, Park Jong-won, deputy minister for trade at the Ministry of Trade, Industry and Energy, will begin a visit to the U.S., followed by a South Korean economic delegation on the 19th. Prof.Yang, High-level meetings with the Trump administration are planned. Do you expect any meaningful outcomes in discussions regarding tariffs, investment, and trade cooperation?

(Yang) 11. South Korea's Acting President Choi Sang-mok has vowed pan-governmental efforts to address the challenges, announcing a record 360 trillion won, or 250 dollars, finance support plan on trade, which is the largest ever. Prof.Yang, what strategies would you suggest for the government? Which areas must these funds be focused on?