The industry insider went onto state that the mention of the issue by President Moon at a summit meeting in itself was significant because it implied the Korean government had a keen interest in the issues surrounding the car industry. (Image courtesy of Yonhap)
SEOUL, Sept. 26 (Korea Bizwire) –Regarding recent reports that U.S. President Trump had asked his aides to review the possibility of lifting tariffs for Korean-made cars, key players within the local car industry are letting out a collective sigh of relief as a possible disaster seems likely to be averted.
Previously, the U.S. government cited Section 232 of the Trade Expansion Act of 1962 and took steps to impose high tariffs, claiming that importing foreign vehicles threatened the security of the United States.
Major U.S. news organizations speculated that the U.S. government could impose a tax as high as 25 percent. But on Monday, South Korean President Moon Jae-in spoke to U.S. President Trump in New York on the sidelines of the United Nations General Assembly, where the former emphasized that more than half of Korean cars sold in the United States were produced locally.
In addition, the South Korean leader stressed that Korea’s trade surplus had fallen by 25 percent in the first half of this year, while the trade surplus of China, Japan, Germany and Mexico against the U.S. had risen significantly. Due to such factors, President Moon formally asked that the tariffs on South Korean cars be lifted.
In response, President Trump asked his aides to take into consideration President Moon’s suggestion. One Korean car expert said that it was hard to comment on the issue because nothing had been finalized yet. “But the car industry in Korea, now, may have higher expectations,” said the expert.
The industry insider went onto state that the mention of the issue by President Moon at a summit meeting in itself was significant because it implied the Korean government had a keen interest in the issues surrounding the car industry.
The industry insider went onto state that the mention of the issue by President Moon at a summit meeting in itself was significant because it implied the Korean government had a keen interest in the issues surrounding the car industry. (Image courtesy of Yonhap)
Kevin Lee (kevinlee@koreabizwire.com)
