Democratic midterm gains may fuel fresh trade uncertainty for Korea
Democratic gains in both chambers of the U.S. Congress in the midterm elections could expose Korea to fresh trade uncertainty, as experts warn that while such a shift would do little to curb U.S. President Donald Trump's tariff powers, it could complicate the implementation of Seoul's investment commitments and prompt him to intensify trade pressure. The $350 billion investment agreement between…
Democratic victories in the recent U.S. midterm elections may introduce new trade uncertainties for South Korea, according to experts. While the shift will not diminish President Donald Trump's authority to impose tariffs, it could complicate the execution of Seoul's investment commitments and potentially intensify the administration's trade pressure.
The $350 billion bilateral investment agreement between the two nations is not expected to be repealed, as the expansion of U.S. manufacturing enjoys bipartisan backing. Nonetheless, the political ramifications of the Republican's electoral loss might compel Trump to showcase advancements on his trade agenda, possibly leading to renewed tariff threats against South Korea.
Trade strategist Jang Sang-sik, from the Korea International Trade Association, noted that the mechanisms for tariff imposition, such as Section 232 and Section 301 of U.S. trade legislation, remain unchanged. The legislative body has largely delegated these powers to the executive branch.
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Also reported by 3 other outlets
- Democratic midterm gains may fuel fresh trade uncertainty for Korea koreatimes.co.kr
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