[News Today] Lessons from US-China tariff deal

[LEAD]
A dramatic agreement between the U.S. and China to significantly slash tariffs is drawing attention to its potential impact on Korea's ongoing negotiations with Washington. The U.S. had recently reached a similar agreement with the UK. For Seoul, the U.S.-China deal could serve as both a clue and a burden.

[REPORT]
The U.S. appeared to offer tariff concessions to the UK.

It conditionally slashed the 25% tariff on cars and steel.

However, it wasn't a real concession.

The U.S. considered its trade surplus with Britain and the items for which tariffs were slashed take up a small percentage in exports.

But Korea is different.

Just in automobiles and steel, Korea's shipments to America are 16 times larger than the UK’s.

This is why trade negotiations with Washington will be trickier for Seoul.

Donald Trump / U.S. President (April 2)
As a result of these colossal trade barriers, 81% of the cars in South Korea are made in South Korea.

What came out of U.S.-China trade talks has made this even clearer.

China also has a large amount of steel and auto-related exports to the U.S.

Washington did not provide product-specific tariff cuts.

Joo Won / Hyundai Research Institute
Korean cars hold a large share of the U.S. auto market, so it’s unlikely we will get an exemption like the UK.

It's likely that Seoul's industry minister will meet again with U.S. Trade Representative Jamieson Greer this week.

Amid the U.S.' request for quick progress, Korea needs to stress its presidential election schedule to secure a grace period and win tariff cuts on autos and steel.

Ahn Duk-geun / Minister of Trade, Industry and Energy (April 26)
We will closely monitor progress made with other trade partners and take part in our negotiations in a calm manner.

Meanwhile, Japan, whose focus is also on reducing auto tariffs, has said that it will not engage in hasty negotiations.