U.S. Trade Tariffs

[Anchor Lead]

In our first story, the U.S. Department of Commerce has levied preliminary anti-dumping tariffs on South Korean chemical products. The measure is seen as one of the first moves by the Trump administration to enact protectionist trade policies.

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Dioctyl Terephthalate is an eco-friendly plasticizer used in toys and construction materials. When trade tariffs were lifted following the signing of the Korea-U.S. free trade agreement, many South Korean chemical companies rushed to establish a presence in the U.S. market. But their rapidly growing exports hit a snag on January 27th, just a week after President Donald Trump took office. The U.S. Department of Commerce has decided to accept the request of American corporations to levy a five-percent preliminary tariff on placticizers produced by LG Chem. and a three-percent tariff on plasticizers produced by Aekyung Petrochemical. The Commerce Department will impose tariffs on all other South Korean makers of plasticizers exported to the U.S. The Korean companies have vowed to fight the U.S. government's move until the final decision is made in June. But they can't help worrying about disadvantages they may face.

[Soundbite] Staff at Petrochemical Company(Voice Modified) : "It's not surprising to see four or five percent tariffs given the Trump administration's policies. We're worried that we may get into trouble if we take issue with this when the final decision is reached."

Finance Minister Yoo Il-ho, who recently visited Korean export companies, said he has been watching closely which trade policies the Trump administration will implement next.

[Soundbite] Yoo Il-ho(Minister of Strategy & Finance) : "The exports still meet our expectations, to say the least. But things may change in February or March."

South Korea must respond swiftly before President Trump's trade protectionist policies affect Korean businesses.