Korea’s automaking and shipbuilding industries on Friday welcomed the Seoul-Washington joint truth sheet finalizing their commerce and safety agreements that will decrease import tariffs on key gadgets and assist Seoul’s plans to construct a nuclear-powered submarine.
In line with the actual fact sheet launched by the Presidential Workplace, the USA will minimize tariffs on imported Korean automobiles and auto components from 25 p.c to fifteen p.c. Korean semiconductors may also be topic to tariff charges “no much less favorable” than these utilized to opponents, equivalent to Taiwan.
As well as, the Korean authorities secured U.S. approval for its bid to construct nuclear-powered submarines and the fitting to reprocess spent nuclear gas.
The announcement got here greater than two weeks after Korean President Lee Jae Myung and U.S. President Donald Trump reached such an settlement in a bilateral summit held on the sidelines of the Asia-Pacific Financial Cooperation (APEC) discussion board in Korea’s southeastern metropolis of Gyeongju, North Gyeongsang Province, on Oct. 29.
“We specific our gratitude to the federal government for its devoted efforts all through the tough negotiation course of resulting in this settlement,” Hyundai Motor Group stated in an announcement.
“Hyundai Motor and Kia will proceed to pursue multifaceted measures to reduce the influence of tariffs whereas additional strengthening our fundamentals via high quality and model enhancement, technological innovation and different initiatives,” it added.
Beforehand, Hyundai Motor Group Govt Chair Euisun Chung thanked President Lee for the Korea-U.S. commerce deal whereas assembly with the president on the sidelines of the APEC discussion board late final month.
Nevertheless, the automotive trade famous that the joint truth sheet didn’t specify the precise timing for the tariff cuts.
Korean carmakers may also want to regulate manufacturing and provide chains to reduce the influence of the 15 p.c tariffs after greater than a decade of tariff-free exports underneath the Korea–U.S. Free Commerce Settlement (KORUS) earlier than Trump imposed a sequence of sector-specific and country-specific reciprocal tariffs.
“The completion of the actual fact sheet is a good aid and a lucky growth for the trade,” stated Kang Nam-hoon, president of the Korea Vehicle and Mobility Affiliation.
“Automakers might want to increase U.S. manufacturing techniques in response to tariffs rising from zero to fifteen p.c, which may pose dangers to the Korean automotive ecosystem,” he stated, calling for presidency incentives to encourage home manufacturing.
The shipbuilding sector, which has been highlighted as a logo of Korea–U.S. industrial cooperation underneath a Seoul-proposed “Make American Shipbuilding Nice Once more” (MASGA) initiative, additionally voiced assist for the strengthened collaboration mirrored within the truth sheet.
“We welcome the finalization of the actual fact sheet on Korea–U.S. commerce and safety offers,” stated Hanwha Group, which oversees Hanwha Ocean Co. and Hanwha Philly Shipyard Inc.
“Hanwha will actively assist the federal government’s safety coverage course and choices and can proceed to align with the nationwide agenda because it has executed thus far.”
Hanwha Group additionally pledged further funding in Hanwha Ocean and Hanwha Philly Shipyard and extra lively assist for Korea-U.S. shipbuilding cooperation.
“In keeping with the reconstruction demand of the U.S. shipbuilding trade, we plan to equip our U.S. shipyard with infrastructure for business vessels and future naval vessels via further funding,” the group added.
The semiconductor trade expressed aid that the settlement supplies a minimum of a fundamental stage of safety in contrast with main opponents within the occasion of future unexpected circumstances.
“Whereas uncertainties stay concerning particular gadgets and negotiations between the U.S. and different nations, it’s constructive that we will keep away from falling behind in competitiveness,” an trade official stated.
“It seems the federal government made vital efforts to safe favorable outcomes for the semiconductor trade.”
