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Trump tariff threatens the automobile industry

Posted May. 25, 2018 07:27,   

Updated May. 25, 2018 07:27


U.S. President Donald Trump instructed the Department of Commerce on methods to impose vehicle import tariffs as high as 25 percent. In just some 20 days since the United States canceled its plan to impose high tariffs on imported steels to Korea, it has sharpened its knife of protectionism against vehicles, which is Korea’s main item of export.

On Wednesday (local time), President Trump made an announcement through a statement that he instructed Secretary of Commerce Wilbur Ross to identify the impact of imported cars, trucks, and parts have on national security under Section 232 of the Trade Expansion Act of 1962. It is stipulated in Section 232 of the Trade Expansion Act to allow the prohibition of importing products that threat security. By using this bill, the United States announced to impose 25 percent and 10 percent of tariffs, respectively, to imported steel and aluminum. The U.S. Department of Commerce will report to Trump within nine months on the analysis of imported cars’ impact on the security of the United States.

Vehicles have the highest proportion among Korea’s export to the United States as about one-third of the total amount of exported vehicles head toward the world economic powerhouse. The Korean government started Thursday responsive countermeasures by forming a joint task force with the industry and the private sector and analyzing the latest trade policies of the United States.

Gun-Huk Lee gun@donga.com