News

What Trump's 25% tariffs mean for S. Korea's steel, automobile industry

2025/02/10 20:00

In related news. South Korean exporters and manufacturers are keeping tabs on the situation as they did during Trump's first term. Our Lee Soo-jin has more. South Korean companies are bracing themselves for the potential impact of Trump's universal tariff threat on their production costs and global competitiveness. "Yeah. Any steel coming into the United States is going to have a 25% tariff. Aluminum too." The import tax is drawing global attention because unlike last week's tariffs, this will be the first time in Trump's second term that a tariff measure is targeting all countries. And Korea is one of those that is expected to be affected, as it is a major steel exporter to the U.S., and its car manufacturers with plants there rely on imported steel and aluminum for car production. "Our main export items to the United States are items like vehicles and semiconductors. But if tariffs are imposed, the competitiveness of our products will likely take a big hit." But this isn't the first time that Trump has imposed a 25 percent on all imports of steel, as he did so previously in 2018 during his first term. South Korea at the time negotiated a deal with the Trump administration whereby it was granted a tariff-free quota for steel exports amounting to around 70 percent of the average amount of steel shipped annually to the U.S. As anything above that limit was subject to the 25 percent tariff, it reduced the volume of steel imports from South Korea. With universal tariffs also expected during his second term, Korean companies had already begun exploring ways to expand investments in the U.S. to minimize related risks. Hyundai Steel, for one, is considering building a steel mill in the U.S. to produce automotive steel sheets, while Hyundai Motor Group plans to further expand local vehicle production there. But compared to other nations facing a 50 percent tariff, the impact on Korea may be of less concern, according to the expert. "While universal tariffs will directly impact our country, it's hard to say that we'll be more impacted than others as they target all nations." The government, however,.. is remaining vigilant with the trade and industry ministry announcing on Monday that it plans to closely monitor the situation and work with the steel industry to come up with response measures. Lee Soo-jin, Arirang News.

KDI warns of growing risks for S. Korea’s economy for two consecutive months

2025/02/10 17:00

The Korean economy continues to face external risk factors especially in light of the Trump administration's tariff campaign and its implications on global trade. Our correspondent Moon Hye-ryeon reports. Concerns about rising risks to South Korea's economy are being raised in light of trade tensions between Washington and Beijing. On Monday, South Korea's state-run Korea Development Institute reiterated these concerns for the second consecutive month in its February Economic Trends report. The agency stated that the domestic economy remains in a moderate growth phase in terms of production, but deteriorating external conditions are increasing risks. The report emphasized the escalating trade disputes, particularly involving the United States, as well as persistent political instability in South Korea – both of which have heightened concerns over worsening trade conditions. The KDI had first raised alarm about growing downside risks in its January Economic Trends report — marking the first such warning since January 2023. The report highlights sluggish domestic demand, with private consumption and construction investment recovering at a slower pace than expected. At the same time, export growth – previously a key driver of the economy – is beginning to slow, particularly in sectors excluding semiconductors. The KDI noted that high interest rates and weakened consumer sentiment due to political instability have contributed to continued sluggish consumption. It added that retail sales have continued to decline across most categories, extending the downturn in goods consumption. Amid prolonged, weak domestic demand, the number of employed workers declined in December, signaling a slowdown in job growth. Investment trends were mixed. While facility investment, particularly in the semiconductor sector, showed resilience, construction investment continued its steep decline due to a significant drop in completed projects. Financial markets also remain volatile due to external risks, particularly uncertainties surrounding the new U.S. Trump administration. On inflation, the KDI noted that recent increases in the exchange rate and global oil prices have contributed to higher consumer price growth, but weak domestic demand is exerting downward pressure on inflation. In January, South Korea's consumer prices rose by 2-point-2 percent year-on-year. However, the KDI suggested that if private consumption remains sluggish, inflation is likely to slow in the coming months. As concerns over weak domestic demand, slowing exports, and external uncertainties grow, the KDI's continued warnings signal heightened risks for South Korea's economic outlook in the months ahead. Moon Hye-ryeon, Arirang News.

[WEEKLY FOCUS] Here's how Trump's tariffs could affect S. Korea

2025/02/08 12:00

Economies around the world are bracing for a potential trade war triggered by recent tariff announcements by U.S. President Donald Trump. For this week's Weekly Focus, we take a closer look at this matter with our trade correspondent Lee Soo-jin. Welcome. Thank you for having me. 1. To start us off, can you tell us what has happened for the past couple of days? Sure, so it has been a rather tumultuous couple of days on the economic front as Trump's tariff threats sparked concerns of a global trade war. On Saturday local time Trump announced 25-percent tariffs on goods from Canada and Mexico, while China was hit with a 10-percent tariff on various existing duty rates. Let's take a listen to what Trump said on tariffs. "And, I don't want to use countries, I don't want to use names, but tariffs are very powerful, both economically and in getting everything else you want." And what he wanted was for the three countries to address trade imbalances, national security concerns related to illegal immigration and the influx of fentanyl into the United States. And while the tariffs were to go into effect on Tuesday, Trump on Monday, decided to pause the implementation of the tariffs for Canada and Mexico, for at least 30 days. This comes as Canada agreed to implement a 1-point-3 billion U.S. dollar border plan which includes reinforcing the border with nearly 10-thousand front-line personnel as well as strengthening resources to respond to fentanyl and money laundering. And Mexico,.. agreed to place 10-thousand National Guard troops along the U.S. border to prevent the flow of drugs. 2. But a trade war between the U.S. and China looks like it's heating up again, setting the stage for another long and costly battle, much like during Trump's first term. Right, so while U.S. tariffs on Canada and Mexico have been delayed for 30 days, China, was given no such reprieve and Trump's 10-percent tariff on Chinese products took effect just after midnight Tuesday. Within minutes, China's Finance Ministry announced retaliatory tariffs of 15 percent on U.S. coal and LNG, as well as 10 percent on crude oil, farm equipment, and certain automobiles, to take effect on February 10th. And,.. according to this expert, China's choice of which items to impose tariffs on was deliberate. "The phenomenon here is that agricultural pick-up trucks will impact agricultural are that are very strong supporters of Donald Trump. Another targeted item was LNG, LNG companies that are also strong supporters of Trump." And China on Wednesday, just one day after Trump raised border taxes on Chinese goods, filed a complaint with the World Trade Organization, calling the tariffs "discriminatory and protectionist" and a violation of trade rules. 3. What do Trump's tariffs mean for South Korea? Sure, so South Korea may actually see both risks and opportunities, in regards to the tariffs on China. To start out with the positive, the tariffs imposed on China mean that Korean exporters may gain a competitive edge in supplying products that China previously dominated. This means that U.S. companies may shift their supply chains to South Korean firms. Let's take a listen. "In markets like the semiconductor industry, companies like SK hynix already have a strong presence, and if tariffs are imposed on China, South Korean products could gain an even greater competitive advantage." As semiconductors are South Korea's top export item, this would boost the country's trade surplus but also enhance the global competitiveness of Korean chipmakers like SK hynix. But the expected drop in exports of Chinese goods to the U.S. may reduce Chinese orders for South Korea's key intermediate goods such as chips, display panels, and batteries. Here's what the same expert said. "Our country's export structure depends on selling intermediate goods to China, for them to be assembled into the final product for export to other countries. So, if demand for China's goods declines, demand for these intermediate goods will also decline." More than 85 percent of Korea's exports to China were intermediate goods such as semiconductors, displays and wireless communication components, according to the Korea International Trade Association. It's also important to note that there are also growing concerns about the possibility of tariffs on the EU and South Korea as well as sector-specific tariffs on products such as semiconductors and steel. 4. How should the government and Korean companies respond to these ongoing tariff threats? Well, for one,.. staying proactive will be key in this turbulent trade environment. And the South Korean government is already doing so through measures announced on Wednesday that include establishing a "Strategic Advanced Industry Fund," worth over 34 trillion Korean won, or around 23 billion U.S. dollars to boost industrial competitiveness. Let's take a listen. "Ongoing global trade uncertainties, including additional tariffs on China, require close attention. We will establish the "Strategic Advanced Industry Fund" at the Industrial Bank of Korea to support high-tech sectors like batteries and biotech." The government also plans to carry out other industry-specific measures such as strengthening U.S. outreach for semiconductor and battery companies, diversifying markets for the automotive sector, and mobilizing task forces. As for the private sector,.. SK Group chairman Chey Tae-won will lead a delegation to Washington, D.C. on the 19th to discuss response strategies, with a meeting with Trump reportedly under discussion. Here's why this is important at this time. "While Trump has not targeted Korea directly, he's threatening tariffs on virtually everybody. he said he wanted to replace subsidies for semiconductor factories with high tariffs. " And moving forward here's what companies that have factories in the U.S. can do,.. according to the expert I spoke to. "Many South Korean companies have factories in Republican-leaning U.S. areas, and by working with local politicians, they can argue that these tariffs could hinder job creation and investment." Alright, thank you for your report today. Thank you for having me.

Fitch rates S. Korea's credibility 'AA-' amid political uncertainty

2025/02/07 10:00

International credit rating agency Fitch has kept South Korea's credit rating at 'AA-minus', maintaining a stable outlook for the country. Fitch reaffirmed South Korea's rating on Thursday, citing strong external finances, stable economic performance, and a dynamic export sector. It believes the current political uncertainty will have minimal short-term impact on Korea's economy. While acknowledging ongoing political risks, Fitch said it does not expect them to significantly undermine the institutions or governance of South Korea. Growth is forecast to slow in 2025, but Fitch said recovery is expected in 2026, supported by improving consumption and investment.

STOCK

2025/02/06 20:00

2025. 2. 6. KOREAN STOCK MARKET KOSPI : 2,536.75 ▲27.48 +1.10% KOSDAQ : 740.32 ▲9.34 +1.28% KOSPI200 : 336.53 ▲4.06 +1.22% ASIAN STOCK MARKET NIKKEI225 : 39,066.53 ▲235.05 +0.61% HANG SENG : 20,891.62 ▲294.53 +1.43% SHANGHAI : 3,270.66 ▲41.17 +1.27% WALL STREET (February 5) DOW JONES : 44,873.28 ▲317.24 +0.71% NASDAQ : 19,692.33 ▲38.32 +0.19% S&P500 : 6,061.48 ▲23.60 +0.39% EXCHANGE RATE USD : 1,447.70 (+3.40) JPY : 949.47 (+7.18) CNY : 198.67 (+0.33) EUR : 1,503.80 (+2.67)

[Econ & Biz] What do Donald Trump's tariffs mean for S. Korea?

2025/02/06 20:00

Economies around the world are bracing for a potential trade war triggered by recent tariff announcements by U.S. President Donald Trump. This week, we take a look at this matter with our trade correspondent Lee Soo-jin. To start us off, can you tell us what has happened for the past couple of days? Sure, so it has been a rather tumultuous couple of days on the economic front as Trump's tariff threats sparked concerns of a global trade war. On Saturday local time Trump announced 25-percent tariffs on goods from Canada and Mexico, while China was hit with a 10-percent tariff on various existing duty rates. Let's take a listen to what Trump said. "And, I don't want to use countries, I don't want to use names, but tariffs are very powerful, both economically and in getting everything else you want." And while they were to go into effect on Tuesday, Trump on Monday, decided to pause the implementation of the tariffs for Canada and Mexico, for at least 30 days. This comes as Canada agreed to implement a 1-point-3 billion U.S. dollar border plan which includes reinforcing the border with nearly 10-thousand front-line personnel as well as strengthening resources to respond to fentanyl and money laundering. And Mexico,.. agreed to place 10-thousand National Guard troops along the U.S. border to prevent the flow of drugs. But Trump's 10-percent tariff on Chinese products took effect just after midnight Tuesday. Within minutes, China's Finance Ministry announced retaliatory tariffs of 15 percent on U.S. coal and LNG, as well as 10 percent on crude oil, farm equipment, and certain automobiles, to take effect on February 10th. And,.. according to this expert, China's choice of which items to impose tariffs on was deliberate. "The phenomenon here is that agricultural pick-up trucks will impact agricultural are that are very strong supporters of Donald Trump. Another targeted item was LNG, LNG companies that are also strong supporters of Trump." 2. What do Trump's tariffs mean for South Korea? Sure, so South Korea may actually see both risks and opportunities, in regards to the tariffs on China. To start out with the positive, the tariffs imposed on China mean that Korean exporters may gain a competitive edge in supplying products that China previously dominated. This means that U.S. companies may shift their supply chains to South Korean firms. Let's take a listen. "In markets like the semiconductor industry, companies like SK hynix already have a strong presence, and if tariffs are imposed on China, South Korean products could gain an even greater competitive advantage." As semiconductors are South Korea's top export item, this would boost the country's trade surplus. But the expected drop in exports of Chinese goods to the U.S. may reduce Chinese orders for South Korea's key intermediate goods. Here's what the same expert said. "Our country's export structure depends on selling intermediate goods to China, for them to be assembled into the final product for export to other countries. So, if demand for China's goods declines, demand for these intermediate goods will also decline." It's also important to note that there are also growing concerns about the possibility of tariffs on the EU and South Korea as well. 3. What should be done to respond to these ongoing tariff threats? Well, for one,.. staying proactive will be key in this turbulent trade environment. And the South Korean government is already doing so through measures announced just yesterday that include establishing a "Strategic Advanced Industry Fund," worth over 34 trillion Korean won, or around 23 billion U.S. dollars. Let's take a listen. "Ongoing global trade uncertainties, including additional tariffs on China, require close attention. We will establish the "Strategic Advanced Industry Fund" at the Industrial Bank of Korea to support high-tech sectors like batteries and biotech." As for the private sector,.. SK Group chairman Chey Tae-won will lead a delegation to Washington, D.C. on the 19th to discuss response strategies, with a meeting with Trump reportedly under discussion. Here's why this is important at this time. "While Trump has not targeted Korea directly, he's threatening tariffs on virtually everybody. he said he wanted to replace subsidies for semiconductor factories with high tariffs. " And moving forward, the expert I spoke to suggested Korean companies use local politicians in Republican-leaning U.S. areas, where many of their factories are located, to emphasize that tariffs could harm jobs and investment. Alright, thank you for your report today. Thank you for having me.

S. Korea's December current account surplus hit record-high in 2024

2025/02/06 20:00

Following a stellar performance last December, Korea's current account marked a remarkable surplus last year at over 99-billion dollars, more than triple the size noted in 2023. Choi Min-jung covers the latest numbers. South Korea's current account surplus hit an all-time high for the month of December. According to data released by the Bank of Korea on Thursday, the country posted an almost 12-point-4 billion-dollar current account surplus in December 2024. This marks the largest December surplus on record. It's also the third-largest monthly surplus in South Korean history. The hike was thanks to strong exports and increased dividend earnings. Exports increased annually by 6-point-6-percent to 63 billion dollars. The continued growth in semiconductors and IT products, along with a slowdown in the decline of non-IT products such as automobiles, contributed to a higher export growth rate. The primary income account, or the net income earned by a country from its foreign investments, as well as wages paid to foreign workers, posted a 4-point-8 billion dollar surplus in December. In particular, the dividend income surplus reached 3-point-6 billion dollars. As a result, the cumulative current account surplus for 2024 reached 99 billion dollars,. more than three times the surplus in 2023. On an annual basis, this is the second-largest current account surplus on record, following the figure posted in 2015. Choi Min-jung, Arirang News.

Fuel tax cut to be extended to end of April to alleviate people's financial burden

2025/02/06 20:00

Acting President Choi Sang-mok has vowed to make use of all available measures to support the nation's economic recovery. This, from an economic meeting held on Thursday focusing on people's livelihoods. To alleviate fuel costs, the temporary fuel tax cut, originally set to end in February, will be extended for two more months until the end of April. This marks the 14th extension since the country introduced it in 2021. And, to stabilize living costs, around 20-million U.S. dollars will be allocated for discounts on agricultural and fisheries products between February and March. On top of that, 370-thousand tons of fruits and vegetable imports with lowered tariffs will be introduced.

S. Korea's December current account surplus hit record-high in 2024

2025/02/06 17:00

In other news. Following a stellar performance last December Korea's current account marked a remarkable surplus last year at over 99 billion U.S. dollars more than triple the size noted in 2023. Choi Min-jung covers the latest numbers. South Korea's current account surplus hit an all-time high for the month of December. According to data released by the Bank of Korea on Thursday, the country posted an almost 12-point-4 billion-dollar current account surplus in December 2024. This marks the largest December surplus on record. It's also the third-largest monthly surplus in South Korean history. The hike was thanks to strong exports and increased dividend earnings. Exports increased annually by 6-point-6-percent to 63 billion dollars. The continued growth in semiconductors and IT products, along with a slowdown in the decline of non-IT products such as automobiles, contributed to a higher export growth rate. The primary income account, or the net income earned by a country from its foreign investments, as well as wages paid to foreign workers, posted a 4-point-8 billion dollar surplus in December. In particular, the dividend income surplus reached 3-point-6 billion dollars. As a result, the cumulative current account surplus for 2024 reached 99 billion dollars,. more than three times the surplus in 2023. On an annual basis, this is the second-largest current account surplus on record, following the figure posted in 2015. Choi Min-jung, Arirang News.

S. Korea's current account balance sees surplus of US$ 99.04 bil. for 2024

2025/02/06 10:00

South Korea's current account balance last year more than tripled compared to the year before on the back of booming exports. Data from the Bank of Korea on Thursday showed that the country's overall current account balance in December was the highest any month of December on record ending the year with a current account balance surplus of 99-point-0-4 billion dollars. This surpasses earlier estimates by the central bank, driven mainly by an increase in exports. Exports rose by more than eight percent year-on-year, spurred by a jump in outbound semiconductor shipments.

U.S. reinstates acceptance of parcels from China and Hong Kong after suspension

2025/02/06 10:00

The United States Postal Service, has announced, that it has resumed accepting parcels from China and Hong Kong, following a brief suspension after recent tariff changes. On Wednesday, the U.S. Postal Service announced it would resume accepting all inbound mail and packages from China and Hong Kong, reversing a suspension that lasted less than a day. The initial halt came in response to the U.S. government's imposition of a 10% tariff on Chinese imports, as well as the suspension of a customs exception, which previously allowed packages valued under 800 U.S. dollars to enter the country duty-free. The brief suspension had raised concerns among e-commerce platforms like Temu and Shein, which heavily rely on direct shipments from China to U.S. consumers. Following the resumption of accepting parcels, Temu's parent company, PDD Holdings, saw its stock recover some losses.

STOCK

2025/02/05 20:00

2025. 2. 5. KOREAN STOCK MARKET KOSPI : 2,509.27 ▲27.58 +1.11% KOSDAQ : 730.98 ▲11.06 +1.54% KOSPI200 : 332.47 ▲3.75 +1.14% ASIAN STOCK MARKET NIKKEI225 : 38,831.48 ▲33.11 +0.09% HANG SENG : 20,597.09 ▼192.87 -0.93% SHANGHAI : 3,229.49 ▼21.11 -0.65% WALL STREET (February 4) DOW JONES : 44,556.04 ▲134.13 +0.30% NASDAQ : 19,654.02 ▲262.06 +1.35% S&P500 : 6,037.88 ▲43.31 +0.72% EXCHANGE RATE USD : 1,444.30 (-18.60) JPY : 942.29 (+0.73) CNY : 198.33 (-1.56) EUR : 1,501.13 (-4.85)

S. Korea announces US$ 23 bil. fund to strengthen next-generation tech

2025/02/05 20:00

In other news. At least 34 trillion won has been earmarked to support critical industries as Korea seeks a strategic edge over rising global competition. Our Choi Min-jung covers this initiative. South Korea has unveiled an ambitious plan to bolster the country's industrial competitiveness, by establishing a "Strategic Advanced Industry Fund", worth over 34 trillion Korean won, or around 23 billion U.S. dollars. The initiative, announced during a high-level ministerial meeting on Wednesday, aims to support critical industries, including semiconductors, batteries, automobiles, shipbuilding, and steel. Acting President and Finance Minister Choi Sang-mok, emphasized industrial competitiveness as the backbone of South Korea's economy, urging swift action to maintain leadership in key sectors. "This fund will provide low-interest loans, equity investments, and other financial support to businesses." The fund will be more than twice the size of the current 17-trillion won semiconductor financing program. It will focus on next-generation technologies, including AI-driven automation, advanced materials, and sustainable energy solutions. Small and mid-sized companies in the materials and equipment industries will receive increased financial support. The announcement comes amid escalating global trade uncertainties, including U.S. tariff adjustments and China's rising dominance in AI and advanced manufacturing. "A Chinese company recently unveiled the AI model "DeepSeek R1," which delivers high performance at a low cost, coming as a fresh shock in the industry. The global AI race is evolving to a more complex competition." The government has pledged speedy implementation of the fund, with concrete plans to be finalized by March in coordination with the National Assembly. Choi Min-jung, Arirang News.

S. Korea announces US$ 23 bil. fund to strengthen next-generation tech

2025/02/05 17:00

At least 34 trillion won has been earmarked to support critical industries as Korea seeks a strategic edge over rising global competition. Our Choi Min-jung covers this initiative. South Korea has unveiled an ambitious plan to bolster the country's industrial competitiveness, by establishing a "Strategic Advanced Industry Fund", worth over 34 trillion Korean won, or around 23 billion U.S. dollars. The initiative, announced during a high-level ministerial meeting on Wednesday, aims to support critical industries, including semiconductors, batteries, automobiles, shipbuilding, and steel. Acting President and Finance Minister Choi Sang-mok, emphasized industrial competitiveness as the backbone of South Korea's economy, urging swift action to maintain leadership in key sectors. "This fund will provide low-interest loans, equity investments, and other financial support to businesses." The fund will be more than twice the size of the current 17-trillion won semiconductor financing program. It will focus on next-generation technologies, including AI-driven automation, advanced materials, and sustainable energy solutions. Small and mid-sized companies in the materials and equipment industries will receive increased financial support. The announcement comes amid escalating global trade uncertainties, including U.S. tariff adjustments and China's rising dominance in AI and advanced manufacturing. "A Chinese company recently unveiled the AI model "DeepSeek R1," which delivers high performance at a low cost, coming as a fresh shock in the industry. The global AI race is evolving to a more complex competition." The government has pledged speedy implementation of the fund, with concrete plans to be finalized by March in coordination with the National Assembly. Choi Min-jung, Arirang News.

Gold price continues to rise amid trade war

2025/02/05 10:00

The price of gold reached a new all-time high on Tuesday, as demand for safe assets surged after the Trump administration imposed an additional 10 percent tariff on China. The spot gold price rose as high as two-thousand-845 dollars and 14 cents per ounce during Tuesday's intraday trading, hitting an all-time high. The closing price of gold futures for April on the New York Mercantile Exchange stood at two-thousand-875 dollars and 80 cents per ounce,.. up zero-point-seven percent from the previous day. The continued increase in the price of gold comes amid growing concerns of an escalation in the trade war between the U.S. and China.

S. Korea's consumer prices up 2.2% y/y in Jan., marking three months of rising inflation

2025/02/05 10:00

Inflation in South Korea rose back into the two percent range for the first time in five months, spurred by rising oil prices. Data from Statistics Korea on Wednesday showed that the country's consumer price index rose two-point-two percent in January compared to the same month the year before. January marks the third month in which consumer prices have seen a year-on-year rise after inflation dropped to one-point-three percent last October. Notably, prices of petroleum products jumped by more than seven percent – marking the highest rise since July last year.

STOCK

2025/02/04 20:00

2025. 2. 4. KOREAN STOCK MARKET KOSPI : 2,481.69 ▲27.74 +1.13% KOSDAQ : 719.92 ▲16.12 +2.29% KOSPI200 : 328.72 ▲4.17 +1.28% ASIAN STOCK MARKET NIKKEI225 : 38,798.37 ▲278.28 +0.72% HANG SENG : 20,789.96 ▲572.70 +2.83% SHANGHAI : CLOSED WALL STREET (February 3) DOW JONES : 44,421.91 ▼122.75 -0.28% NASDAQ : 19,391.96 ▼235.49 -1.20% S&P500 : 5,994.57 ▼45.96 -0.76% EXCHANGE RATE USD : 1,462.90 (-4.30) JPY : 941.56 (-2.71) CNY : 199.89 (0.00) EUR : 1,505.98 (+2.61)

STOCK

2025/02/04 20:00

2025. 2. 4. KOREAN STOCK MARKET KOSPI : 2,481.69 ▲27.74 +1.13% KOSDAQ : 719.92 ▲16.12 +2.29% KOSPI200 : 328.72 ▲4.17 +1.28% ASIAN STOCK MARKET NIKKEI225 : 38,798.37 ▲278.28 +0.72% HANG SENG : 20,789.96 ▲572.70 +2.83% SHANGHAI : CLOSED WALL STREET (February 3) DOW JONES : 44,421.91 ▼122.75 -0.28% NASDAQ : 19,391.96 ▼235.49 -1.20% S&P500 : 5,994.57 ▼45.96 -0.76% EXCHANGE RATE USD : 1,462.90 (-4.30) JPY : 941.56 (-2.71) CNY : 199.89 (0.00) EUR : 1,505.98 (+2.61)

Wall Street settles, bitcoin rebounds past US$ 100,000 on news of Trump's tariff pause

2025/02/04 17:00

For now though the decision to delay Trump tariffs on major U.S. trade partners kept its stock market from sinking deeper during Monday's trade. Lee Seung-jae has the numbers. On the first day of Wall Street trading since U.S. President Donald Trump's announcement of 25 percent tariffs against Canada and Mexico, and an additional 10 percent tariff on China, major indexes saw major sell-offs. However,.. major sell-offs slowed as Trump announced that he would put a hold on the 25 percent tariff on Mexico and Canada, in order for negotiations to take place. By the end of Monday's trading, the S&P 500 fell just zero-point-eight percent, while the Dow lost 122 points, or zero-point-3 percent. The tech heavy Nasdaq fell one-point-two percent. Still,.. major tech and auto shares fell on the day, due to concerns that an intensified trade conflict due to Trump's tariffs and the response from affected countries could hamper sales. America's largest carmaker General Motors fell as much as 7 percent during premarket trading Monday, before recovering to trade over three percent lower from its previous trading session. Stellantis N.V. also fell nearly four percent by the end of Monday's session. Apple, which relies heavily on Chinese labor for its production,.. also saw its share fall over three percent. However, bitcoin which fell over the week, rebounded to above 100 thousand U.S. dollars again. According to U.S.-based cryptocurrency exchange Coinbase as of 8 AM Korea Standard Time, the price of Bitcoin stood at over 101 thousand seven hundred U.S. dollars. Concerns still remain for South Korea's currency market, as the greenback continues to strengthen against the won amid Trump's protectionist policies. According to the Seoul Money Brokerage as of 2 AM Tuesday morning, the won fell 9-point-3 won against the U.S. dollar, to close at 1-thousand-462 won. Lee Seung-jae, Arirang News.

Trump pauses tariff imposition on Mexico and Canada

2025/02/04 17:00

U.S. tariffs on Canada and Mexico have been delayed for 30 days BUT the additional 10-percent tax on Chinese imports have been put in place. Ahn Sung-jin reports. U.S. President Donald Trump's 10-percent tariff on Chinese products took effect just after midnight Tuesday. This means that all Chinese goods going into the country will be levied under the trade measures. China immediately hit back with retaliatory taxes of its own. The country's Customs Tariff Commission of the State Council announced that certain U.S. products such as petroleum or agricultural machinery will have a 10 percent tariff while coal and LNG will be levied 15 percent, starting on the 10th. This comes as Trump stated that he will be talking with China on deals regarding stopping the flow of fentanyl, and the Panama Canal. However, whether Trump will strike a deal with China remains unclear as Beijing's ambassador to the United Nations, Fu Cong reaffirmed the country's position during a press conference at the UN headquarters early Tuesday, stating that China will file a lawsuit with the World Trade Organization and implement countermeasures regarding Trump's tariffs. Unlike China, less than a day ahead of Trump's imposition of 25-percent tariffs on Canada and Mexico, the tariffs have been postponed for at least a month. Canadian Prime Minister Justin Trudeau on Monday local time posted on X that he had "a good call with President Trump" signaling that a deal has been struck. The deal includes implementing a 1-point-3 billion U.S. dollar border plan which includes reinforcing the border with nearly 10-thousand front-line personnel as well as strengthening resources to respond to fentanyl and money laundering. The agreement with Canada comes only hours after Trump announced a similar deal with Mexico. Just a day before U.S. tariffs were to take place, Mexico agreed to also place 10-thousand national guard troops along the U.S. border to prevent the flow of drugs. "I told him we wanted him to pause the tariffs, so we reached that agreement. I'm sure that during this month we'll be able to deliver good results for his people and the people of Mexico." Over the next month, the U.S. and Mexico will be negotiating on trade and security issues before a final decision on whether to implement full tariffs. Concerns over a global tariff war sparked by Trump are still high as he also warned of tariffs to the European Union. "When targeted unfairly or arbitrarily, the European Union will respond firmly." Whether these trial periods for Canada and Mexico will lead to successful tariff deals is unclear negotiations could see the U.S. adding on trade issues and concrete results may not appear regarding drug trafficking or illegal immigration issues. Ahn Sung-jin, Arirang News.