USA and South Korea will hold trade negotiations in the coming week

According to Reuters, in the week representatives of South Korea will hold negotiations with the US authorities in Washington. The key topic of the meeting will be the trade policy of the United States. The audience will take place during the spring session of the IMF and the World Bank. The South Korean delegation will be headed by the Minister of Trade of the AN DUK Gyn. Representatives of the country will negotiate with the US Minister of Finance Scott Bessent.

It is worth noting that Donald Trump introduced duties of 25% for goods from South Korea. However, he recently postponed new tariffs for 90 days. In turn, Seoul is aimed at agreeing on the abolition of duties. According to officials, a trade confrontation can negatively affect the fragile segment of the country’s export. Last week, the Central Bank of South Korea left a key rate at 2.75%. Representatives of the regulator noted that it takes more time to evaluate internal and global trade changes.

It was emphasized that there is now obvious uncertainty, and therefore it is difficult to make forecasts in the context of financial prospects. However, officials suggest that economic growth will probably fall below 1.5%, which were predicted back in February. This trend is directly related to a slowdown in export dynamics, in low demand from local households and political instability.

In the middle of the month, the government of South Korea ratified the emergency budget worth about $ 8.45 billion. It was emphasized that the funds would be allocated to support the semiconductor sector, since this niche remains a very important industry for the country.

The Bank of South Korea also expressed concern about the price fluctuations in the national currency. This can negatively affect local households.

Author

Andrey Alexandrov