South Korea that Trump keeps a close eye on? Goldman Sachs Predicts A Darker Future For Domestic Economy [Now News]

While U.S. President-elect Donald Trump has vowed to raise tariffs on China, other Asian countries such as South Korea and Taiwan could also be threatened by such tariffs, according to Goldman Sachs, a large U.S. investment bank.

According to CNBC, Goldman Sachs said in a recent report that the U.S. trade deficit with China has decreased somewhat since the inauguration of the first Trump administration, but the deficit with other Asian countries has increased significantly."The surging trade deficit in a 'mole grab' manner risks eventually triggering U.S. tariffs on other Asian countries, as Trump and some leading candidates for the ∀ are focused on reducing the U.S. trade deficit," the
report added.

Tariffs are taxes on imports, but not paid by exporting countries, but paid by companies that want to export their products to the United States, which in turn increases the cost of companies.

During his presidential campaign, Trump said he would not only impose 60% tariffs on Chinese goods, but also impose 10-20% universal tariffs on all imports.In particular, the

report said, "South Korea, Taiwan and Vietnam are making large surpluses in trade with the United States," adding, "This is because South Korea and Taiwan have 'privilege positions' in the semiconductor supply chain, and Vietnam is benefiting from China's bypass trade."

Last year, South Korea's trade surplus with the U.S. was $44.4 billion, with automobiles accounting for 30% of its total exports to the U.S.

For Taiwan, exports to the U.S. rose 57.9% year-on-year to a record high of $24.6 billion in the first quarter of this year, with IT and audiovisual products the biggest increase.

Vietnam's trade surplus with the U.S. from January to September this year reached $90 billion, and India and Japan also have trade surpluses with the U.S.

"Going forward, these countries will try to get out of the pressure by reducing their trade surplus with the U.S. through a variety of ways, including increasing imports from the U.S., if possible," Goldman Sachs predicted.



a journalist | Kim Jan-di
AI Anchor|Y-GO
Edit Caption | Lee Mi-young


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