First day in office, universal tariff 'holds for now'...a breather in the industry

President Trump's inauguration...Universal tariffs are not immediately implemented
Trump "Investigates Unfair Trade Practices by Establishing Foreign Import Office"
8th place in the U.S. Trade Marks Korea..."It's not a safe stage"
"Foreign investment ↑ GDP value added to avoid tariffs"

[Anchor]
On his first day in office, President Trump, who vowed to seal an executive order imposing universal tariffs on trading partners, stepped back.

First of all, we ordered China, Canada, and Mexico to look at unfair trade practices, but our industry, which has escaped from the primary target, can take a breather.

Reporter Hwang Hye-kyung reports.

[Reporter]
President Trump has threatened to impose additional tariffs on his trading partners since he was a candidate.

In particular, the world drew attention by signing a universal customs executive order from the first day of his inauguration, but there was no specific mention in his inauguration speech.

[Donald Trump / President of the United States: I will start to check the trade system to protect American workers and families and I will impose tariffs and taxes on foreign countries to enrich our people.]

Instead, it decided to establish a foreign import agency and investigate the U.S. trade deficit and unfair trade practices of its trading partners.

According to U.S. media reports, the main targets are China, Canada, and Mexico, and our country is not mentioned.

In addition, it is expected to take more time to actually implement it due to the possibility of fierce debates within the administration over universal tariffs.

However, the majority opinion is that it is not a stage to be relieved.

This is because Korea is ranked eighth in the U.S. trade footprint, so it can be targeted at any time.

[Kim Moon-tae / Head of Industrial Policy Team, Korea Chamber of Commerce & Industry: It is fortunate that no immediate tariff measures have been announced. However, it is likely that the stance will not change, but that a more refined and refined tariff policy will be implemented, so companies have no choice but to think about how much they will increase local production or investment in the United States to reduce the tariff burden.]

Earlier, the Korea Institute of Industrial Economics and Trade also published a study showing that if the U.S. raises tariffs by 10 to 25 percent, Korea's exports to the U.S. will decrease by 9 to 13 percent.

In addition, if companies increase overseas investment, such as relocating production bases, to avoid tariffs, the damage to our industry, including added value and job losses, is expected to be greater.

The government is also making diplomatic efforts to ensure that South Korea can be designated as an exception to the imposition of universal tariffs, but it is not possible due to the prolonged administration vacuum due to the impeachment.

Although the public and private sectors are putting their heads together to come up with countermeasures over various scenarios, concerns are growing over whether they will be able to safely overcome the fierce "America First" wave.

I'm YTN Hwang Hye-kyung.