Emergency meeting in South Korea
On September 22, local time, South Korea released export data, in the first 20 days of this month, South Korea's average daily total exports fell by more than 10 percent, and they had to convene an emergency meeting to try to discuss the response.
Why is Korea so nervous?
First, the total amount of U.S. tariffs on South Korean goods in the second quarter of 2025 reached $3.3 billion, compared with a much lower figure in the fourth quarter last year, equivalent to a 47-fold increase.
Second, the trade negotiations between the two sides were unsuccessful, while Japan has reduced tariffs to 15 percent, and South Korean automobiles and parts, steel and aluminum are still subject to higher tariffs, affecting South Korean exports.
Third, South Korea relied on the U.S. market for a long time in the past, which led to being dominated by the United States.
Fourthly, in terms of military affairs, the U.S. military has officially and legally stationed troops since 1953 and has many privileges. South Korea has also put forward the demand for independent development of national defense, but the United States has not responded.
Fifth, South Korea’s economic development is relatively sluggish, with the difficulty of achieving 2% economic growth very high, and the need to invest $350 billion in the United States, which is an astronomical figure.
Sixth, North Korea and China strongly cooperate, causing South Korea to worry.
Specifically, from the 1st to the 20th of this month, the average daily export volume of South Korea was US $2.43 billion, down 10.6% year-on-year, while the average daily export volume to the United States dropped sharply by 16.4% year-on-year. If the trade negotiations between the two sides reach a deadlock, then South Korea's exports will suffer heavy losses.
Especially in the automotive, chip, aerospace, shipbuilding and other fields, this is also the economic pillar of South Korea, so on the same day South Korea convened a lot of companies to meet.
And they also raised their own demands, hoping to reduce tariffs while resolving the visa issue for the personnel.
To summarize, trade talks with South America are difficult because of the big differences between the two sides and the U.S. wants South Korea to invest in cash, but this will obviously lead South Korea into a financial crisis and even impeachment.
However, the United States is not moving, so that South Korea is very cold, only to find a way, either to obey the United States, or from finding other reliable partners, to compensate for the financial losses.
On September 22, local time, South Korea released export data, in the first 20 days of this month, South Korea's average daily total exports fell by more than 10 percent, and they had to convene an emergency meeting to try to discuss the response.
Why is Korea so nervous?
First, the total amount of U.S. tariffs on South Korean goods in the second quarter of 2025 reached $3.3 billion, compared with a much lower figure in the fourth quarter last year, equivalent to a 47-fold increase.
Second, the trade negotiations between the two sides were unsuccessful, while Japan has reduced tariffs to 15 percent, and South Korean automobiles and parts, steel and aluminum are still subject to higher tariffs, affecting South Korean exports.
Third, South Korea relied on the U.S. market for a long time in the past, which led to being dominated by the United States.
Fourthly, in terms of military affairs, the U.S. military has officially and legally stationed troops since 1953 and has many privileges. South Korea has also put forward the demand for independent development of national defense, but the United States has not responded.
Fifth, South Korea’s economic development is relatively sluggish, with the difficulty of achieving 2% economic growth very high, and the need to invest $350 billion in the United States, which is an astronomical figure.
Sixth, North Korea and China strongly cooperate, causing South Korea to worry.
Specifically, from the 1st to the 20th of this month, the average daily export volume of South Korea was US $2.43 billion, down 10.6% year-on-year, while the average daily export volume to the United States dropped sharply by 16.4% year-on-year. If the trade negotiations between the two sides reach a deadlock, then South Korea's exports will suffer heavy losses.
Especially in the automotive, chip, aerospace, shipbuilding and other fields, this is also the economic pillar of South Korea, so on the same day South Korea convened a lot of companies to meet.
And they also raised their own demands, hoping to reduce tariffs while resolving the visa issue for the personnel.
To summarize, trade talks with South America are difficult because of the big differences between the two sides and the U.S. wants South Korea to invest in cash, but this will obviously lead South Korea into a financial crisis and even impeachment.
However, the United States is not moving, so that South Korea is very cold, only to find a way, either to obey the United States, or from finding other reliable partners, to compensate for the financial losses.