I guess we will see if this trip to Korea by Trump Jr. will lead to any breakthroughs in trade negotiations with the U.S.:
Donald Trump Jr., the eldest son of US President Donald Trump, arrived in Seoul on Tuesday for a meeting with around 20 business leaders from South Korean conglomerates, industry sources said.
The two-day trip by Trump Jr., his first to South Korea since his father’s inauguration in January, comes at the invitation of Shinsegae Group Chairman Chung Yong-jin.
Per sources, Trump Jr. arrived at Gimpo International Airport, western Seoul, in his private jet at around 6:25 p.m. Tuesday. It had been scheduled to touch down at 4:45 p.m. but there had been a slight delay before the departure.
Wearing a black cap and a long-sleeve shirt, Trump Jr. left the airport without speaking to the dozens of waiting South Korean reporters.
South Korean business circles asked Chung to facilitate Trump Jr.’s visit as a way to establish contact with the Trump administration, according to the sources.
I guess we will see next week if the ROK can strike a deal or not with the Trump administration. What will be interesting is if a deal is struck will the likely Lee Jae-myung administration in two months stick to it?:
The United States will engage in trade negotiations with South Korea next week, Treasury Secretary Scott Bessent said Monday, stressing the “first mover advantage,” as countries are striving to strike deals with the U.S. to minimize the impact of President Donald Trump’s tariff policy on their economies.
In a Bloomberg interview, Bessent touched on plans for upcoming negotiations with South Korea and Japan. Earlier this month, Trump imposed steep “reciprocal” tariffs on the two allies and dozens of other countries but later placed a 90-day pause on the new tariffs.
“We had Vietnam in last week. We (have) Japanese in on Wednesday. … South Korea next week,” he said. “So it’s going to move fast.”
The secretary underscored there will be a “first mover” advantage as Japanese Prime Minister Shigeru Ishiba told parliament Monday (Tokyo time) that Japan will not make compromises for the sake of quickly wrapping up tariff talks with the U.S.
“I think there will be advantage to our allies, especially a first mover advantage,” he said. “Usually, the first person who makes a deal gets the best deal.”
Since Samsung has so much production in Vietnam compared to Apple’s heavy reliance on China, they probably are in better position to navigate the growing trade war between the U.S. and China:
Samsung Electronics remains on alert amid the Donald Trump administration’s unpredictable trade policies, despite the United States granting tariff exemptions for smartphones, laptops, personal computers and semiconductor equipment.
The U.S. Customs and Border Protection said Saturday (local time) that those devices will be excluded from the sweeping 10 percent baseline tariff on nearly all countries, as well as the retaliatory 125 percent duty on China.
Following the updated guidance, Samsung has been considered one of the beneficiaries along with Apple and TSMC. Bloomberg described the measure as a “big win” for major tech firms.
The optimistic outlook stems from Samsung’s heavy reliance on production in Vietnam, which is on the verge of facing a 46 percent “reciprocal tariff” from the U.S. if trade talks between Hanoi and Washington fail following the current 90-day pause. The Korean company produces nearly 50 percent of all Galaxy smartphones sold globally at its Vietnamese facilities.
I think this is where the political crisis has really impacted South Korea, which is the inability to effectively negotiate tariffs with the Trump administration because you don’t know who will be President week-to-week:
Industry Minister Ahn Duk-geun, right, speaks at the Korea Chamber of Commerce and Industry in Seoul, Thursday, during a meeting with businesspeople to discuss countermeasures against U.S. reciprocal tariffs. In the middle is Trade Minister Cheong In-kyo.
Korea has been hit with the highest reciprocal tariff rate among the 20 countries that have free trade agreements (FTAs) with the United States.
With it clear that Seoul had failed to persuade Washington to impose lower tariffs on Korean products compared to those from major exporters like Japan and the European Union, concerns are growing over Korea’s diplomatic approach and future trade negotiations with the U.S.
The White House announced on Wednesday (local time) that the U.S. will impose a 26 percent reciprocal tariff on Korea, while charging 24 percent on Japan and 20 percent on EU member states.
It will not only be South Korean stocks dipping this week, but likely most of the world as well:
South Korean stocks fell 3 percent to a near two-month low Monday ahead of U.S. reciprocal tariffs set to be announced later this week amid the removal of a short selling ban. The local currency sharply fell against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) dropped 76.86 points to close at 2,481.12, marking the lowest closing since Feb. 3, when it finished at 2,453.95.
Trade volume was slim at 385.5 million shares worth 8.1 trillion won (US$5.5 billion), with losers sharply outnumbering winners 824 to 87.
Foreigners sold a net 1.5 trillion won worth of stocks, while institutions and individuals purchased a net 666.9 billion won and 789.9 billion won, respectively.
Analysts said investors were concerned that U.S. President Donald Trump’s reciprocal tariffs, slated for Wednesday (U.S. time), would trigger a global trade war. He also confirmed 25 percent tariffs on all imported cars set to take effect Thursday.
It looks like Korea is learning how to get in the good graces of the Trump administration, invest in America:
Hyundai Motor Group Executive Chair Euisun Chung listens, as U.S. President Donald Trump delivers remarks at the White House, in Washington on March 24, 2025 in this photo released by Reuters.
South Korean conglomerate Hyundai Motor Group said Monday it will invest US$21 billion in the United States through 2028, as U.S. President Donald Trump is ramping up tariff pressure to boost domestic manufacturing.
The group’s Executive Chair Euisun Chung, alongside Trump and Louisiana Gov. Jeff Landry, made the announcement on the plan that includes an investment of $8.6 billion for the automotive sector, $6.1 billion for the steel industry, component parts and logistics, and $6.3 billion for future industry sectors and energy.
“Today, I am pleased to announce an additional $21 billion in new investment over the next four years — our largest U.S. investment ever. A key part of this commitment is our $6 billion investment to strengthen the U.S. supply chain (for) steel and parts for automobiles,” he said at the White House.
This is quite a turn over in restaurants when the number of closures is even worse than the COVID years:
South Korea’s restaurant industry is in the midst of its worst downturn in nearly two decades, with over 107,000 eateries shutting down in 2024 — the highest number on record.
For the first time in 16 years, more restaurants closed than opened, signaling a shift in a sector once known for its resilience and fierce competition. A combination of rising ingredient costs, slowing consumer spending, and post-pandemic economic struggles has created a perfect storm in the industry.
According to government data, 10.4 percent of full-service restaurants closed in 2024, the highest closure rate since 2005. In the capital city of Seoul, the rate was even higher at 13 percent, while Sejong City saw a staggering 14.6 percent closure rate. These figures reflect a growing financial strain on restaurant owners, who have faced mounting challenges since the COVID-19 pandemic reshaped the dining industry.
Maybe these Korean firms need to be lobbying the Mexican government to start cracking down on fentynal smuggling and human trafficking along the border to get these tarriffs removed:
South Korea’s economy has come under direct impact as US President Donald Trump signed an executive order on Saturday imposing tariffs on Mexico, Canada and China, raising concerns about a prolonged global trade war.
Industry experts warned on Sunday that Korea, heavily dependent on exports, could face significant setbacks if Trump’s tariff war escalates. Major companies, including Samsung Electronics, have manufacturing plants in Mexico and additional trade restrictions could disrupt their supply chains and profitability.
Korean firms strategically expanded their production bases in Mexico after the first round of US trade sanctions against China under the previous Trump administration. Electronics giants such as Samsung and LG, as well as automaker Hyundai Motor Group, bolstered their investments, either expanding existing facilities or establishing new ones.
As a result, Korea’s investment in Mexico surged from $11 million in 2020 to $396 million in 2022.
If Trump wants to increase tariffs on South Korea I don’t think it really matters who the leader is:
Korea’s ongoing leadership crisis, triggered by President Yoon Suk Yeol’s attempt to impose martial law, is feared to leave the country vulnerable to potential new tariffs from the incoming Donald Trump administration during upcoming trade and economic negotiations, industry officials said Sunday.
Yoon is suspended from his duties following the National Assembly’s vote on Saturday to impeach him over his short-lived imposition of martial law on Dec. 3. Prime Minister Han Duck-soo has stepped in as acting president.
Officials from the nation’s business community expressed concerns that Korea may have weaker negotiating power under the presidency of the interim head of state.
“Every nation engages in a tight tug-of-war with the United States to minimize any damages from the ultra-protectionist stance of Trump,” an official from a major manufacturing firm here said.
“But it becomes harder for Korea to do so on an equal footing due to the absence of the state leader.”
It appears Korean business owners are expecting the Trump administration to use tariffs on ROK exports if they are this concerned:
More than 8 out of 10 South Korean companies expect Donald Trump’s reelection as U.S. president will have a negative impact on the national economy, a survey showed Sunday.
In the annual survey on 239 companies with at least 30 employees on their management, 82 percent said the Korean economy will be negatively affected by the protectionist policy of the incoming second Trump administration as it has high dependence on exports, according to the Korea Enterprises Federation (KEF).
Only 7.5 percent answered the Korean economy will benefit from his reelection thanks to his China policy, expected to be aimed at curbing the growth of the world’s second-largest economy.
