US Tariffs Escalate Global Trade Tensions

Published on 3.27.25

  The escalating trade war between the US and several countries, including South Korea, has significant implications for international relations. The US President's threat to impose a 200% tariff on European wine and spirits is part of a broader strategy targeting countries with large trade surpluses, known as the 'dirty 15'. This move has sparked concern among major trading partners. South Korea, which has significant trade deficits with the US, is likely to be targeted by the White House's new tariffs. Hyundai Motor Company, South Korea's largest automaker, has invested heavily in the US market under President Trump's tariff policies, citing them as an incentive for localization efforts. The company's affiliate Kia already has a plant in Georgia, and Hyundai plans to hold an opening ceremony for its new car factory there later this month. Industry Minister Ahn Duk-geun visited Washington on February 27 to meet with US Commerce Secretary Howard Lutnick, seeking an exemption from upcoming tariff measures. A hike in US tariffs could negatively impact the Korean steel industry, with Hyundai Steel considering building a steel factory in the southeast US as part of a broader trend of companies seeking to avoid or mitigate the effects of US trade policies by investing in domestic production. The imposition of tariffs on automotive imports has sparked international concern, with Japan calling the move 'extremely regrettable' and China labeling it a violation of World Trade Organization rules.

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