US Likely to Hit Korea with Item Tariffs.. Exports to Drop Faster from July

[Financial News] US President Donald Trump announced a 25% mutual tariff on Korea starting August 1, but even if the US agrees on mutual tariffs with us, it is expected to precisely target us, Japan, and Germany with individual item tariffs.
The mutual tariff was just a preview, and if the US is not satisfied with the mutual tariff negotiations with Korea, the response to item tariffs with Korea could become more severe.
Especially, until June, the export decline rate was minimal compared to the same period last year, but with the full impact of tariff increases, new export volumes are decreasing, and the export scale could sharply decrease from July.
These opinions were expressed at the 'Korea-US Trade Negotiation Countdown: Emergency Forum for National Interest in Tariff War' held by Na Kyung-won, a member of the People Power Party, at the National Assembly Members' Office Building on the 11th, where experts voiced concerns about the impact of US trade policies on our export scale.
Jung In-kyo, a professor of international trade at Inha University and former head of the Trade Negotiation Headquarters of the Ministry of Trade, Industry and Energy, said in his keynote speech, "Mutual tariffs are just the beginning. The remaining item tariffs will have a greater impact," adding, "Item tariffs are like precision strike missiles for countries like us and Japan."
Emphasizing the need to resolve mutual tariffs smoothly to negotiate item tariffs, Professor Jung predicted, "The US is likely to end mutual tariff talks and deliver decisive blows with item tariffs to many countries."
Professor Jung explained, "If mutual tariffs with the US go wrong, item tariff negotiations with Korea will become more difficult," adding, "The US is expected to introduce its export control system and demand active participation in various US-led technology and security policies."
He continued, "Now, we must be prepared for a 10% tariff on all items, and our exports are noticeably decreasing due to US tariff policy," expressing concern that "the current decline rate is single-digit but could expand to double digits."
Cho Sung-dae, head of the Trade Research Division at the Korea International Trade Association, also stated in his presentation, "The impact of tariffs is intensifying. Until June, exports decreased by 0.03% compared to the previous year, which seems insignificant, but it is not," diagnosing, "Item tariffs are said to be precision strikes, and such phenomena are occurring."
According to the Trade Association, the automobile export decline rate in May was 27.1% compared to the same period last year, and steel exports fell by 16.3%. The decline rates in February to May were 12.9% and 10.0%, respectively, indicating an expansion of the decline rate.
Cho emphasized, "The lack of significant changes in exports from April to June is only due to orders placed from January to March," adding, "With the full impact of tariffs from April, new export volumes are decreasing, and exports will decrease faster from the end of June and July."
Cho mentioned that companies are increasingly feeling the export crisis, saying, "Even if there is a trade agreement with the US, the impact of US protectionist measures could emerge in third countries, posing a burden," urging, "Even after Trump, US trade policies and environment will not return to pre-Trump conditions. We must respond anew to major changes."
Meanwhile, Jang Sung-gil, Director of Trade Policy at the Ministry of Trade, Industry and Energy, said, "The US side is demanding the opening of US crude oil, LNG, and agricultural products," adding, "The government is making an all-out effort with the industry to respond to the US strategy of linking trade issues with diplomatic and security issues for a comprehensive settlement." 

hjkim01@fnnews.com Kim Hak-jae Reporter