S. Korean firms face decline in US sales in case of further tariffs: report
Leaders Index surveyed 100 firms out of the country's top 500 companies by sales to analyze their US sales between January-September 2024.
The 100 companies' US sales jumped 19.5 percent to a combined 313.52 trillion won ($215.7 billion) in the nine-month period from 262.27 trillion won a year earlier, the company said in a press release.
The ratio of US sales out of their overall sales also increased to 28.1 percent from 25.2 percent over the same period, it added.
Should the Donald Trump administration impose additional tariffs on imports, as he has said, South Korean chipmakers, automobile manufacturers, pharmaceutical and bio-health companies are expected to suffer the most, according to Leaders Index.
Higher tariffs will weaken their price competitiveness and affect their sales in the US market, it noted.
"Companies like Samsung Electronics and Hyundai Motor, which have production facilities in the US, may consider increasing US production in case of higher tariffs," Leaders Index Chief Executive Park Ju-gun said.
On Monday, Trump ordered a 25 percent tariff on all steel and aluminum imports, saying it will lead to "a lot of businesses" opening in the United States. He has also threatened to start imposing reciprocal duties on some trade partners in the very near future. (Yonhap)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
an hour ago
- Korea Herald
S. Korea proposes major shipbuilding investment in US ahead of tariff negotiation deadline
South Korea has proposed a multibillion-dollar shipbuilding investment package in the United States as part of ongoing negotiations to avert steep US tariffs as the Aug. 1 deadline for such a deal nears, government sources said Monday, noting the proposal appears to have been well received. According to the multiple sources, Industry Minister Kim Jung-kwan held talks with US Commerce Secretary Howard Lutnick on Friday in New York, during which he presented the proposal, dubbed "Make American Shipbuilding Great Again". The MASGA project, whose name is inspired by US President Donald Trump's slogan "Make America Great Again", involves large-scale investments by South Korean private shipbuilders in the US The package includes not only capital investment but also financial support, such as loans and guarantees backed by Korean institutions. Public financial institutions, such as the state-run Export-Import Bank of Korea, are being considered as potential participants in providing financial support for the MASGA initiative, the source said. Lutnick, who is seen as a key decision-maker in the bilateral tariff negotiations, reportedly responded positively to the proposal and expressed satisfaction with Seoul's offer. As part of the ongoing talks, Finance Minister Koo Yun-cheol is expected to visit the US later this week and is likely to meet with US Treasury Secretary Scott Bessent on Thursday. Seoul aims to finalize a trade agreement with Washington before the Aug. 1 deadline to reduce the 25 percent reciprocal tariff and sector-specific duties imposed on South Korean goods under the Trump administration. The reciprocal tariffs were initially implemented April 9 but were immediately suspended by President Trump for 90 days to allow for negotiations. The suspension has since been extended, but Washington indicated plans to resume enforcement starting Aug. 1 unless a deal is reached. (Yonhap)
Korea Herald
an hour ago
- Korea Herald
US, EU reach 15% tariff deal
TURNBERRY, Scotland (Reuters) -- The US struck a framework trade agreement with the European Union on Sunday, imposing a 15 percent import tariff on most EU goods -- half the threatened rate -- and averting a bigger trade war between the two allies that account for almost a third of global trade. US President Donald Trump and European Commission President Ursula von der Leyen announced the deal at Trump's luxury golf course in western Scotland after an hour-long meeting that pushed the hard-fought deal over the line, following months of negotiations. "I think this is the biggest deal ever made," Trump told reporters, lauding EU plans to invest some $600 billion in the United States and dramatically increase its purchases of US energy and military equipment. Trump said the deal, which tops a $550 billion deal signed with Japan last week, would expand ties between the trans-Atlantic powers after years of what he called unfair treatment of US exporters. Von der Leyen, describing Trump as a tough negotiator, said the 15 percent tariff applied "across the board,' later telling reporters it was "the best we could get." "We have a trade deal between the two largest economies in the world, and it's a big deal. It's a huge deal. It will bring stability. It will bring predictability," she said. The agreement mirrors key parts of the framework accord reached by the US with Japan, but like that deal, it leaves many questions open, including tariff rates on spirits, a highly charged topic for many on both sides of the Atlantic. The deal, which Trump said calls for $750 billion of EU purchases of US energy in coming years and "hundreds of billions of dollars" of arms purchases, likely spells good news for a host of EU companies, including Airbus, Mercedes-Benz and Novo Nordisk, if all the details hold. German Chancellor Friedrich Merz welcomed the deal, saying it averted a trade conflict that would have hit Germany's export-driven economy and its large auto sector hard. German carmakers, VW, Mercedes and BMW were some of the hardest hit by the 27.5 percent US tariff on car and parts imports now in place. The baseline 15 percent tariff will still be seen by many in Europe as too high, compared with Europe's initial hopes to secure a zero-for-zero tariff deal. Bernd Lange, the German Social Democrat who heads the European Parliament's trade committee, said the tariffs were imbalanced and the hefty EU investment earmarked for the US would likely come at the bloc's own expense. Trump retains the ability to increase the tariffs in the future if European countries do not live up to their investment commitments, a senior US administration official told reporters on Sunday evening. The euro rose around 0.2 percent against the dollar, sterling and yen within an hour of the deal's being announced. Carsten Nickel, deputy director of research at Teneo, said Sunday's accord was "merely a high-level, political agreement" that could not replace a carefully hammered out trade deal: "This, in turn, creates the risk of different interpretations along the way, as seen immediately after the conclusion of the US-Japan deal." While the tariff applies to most goods, including semiconductors and pharmaceuticals, there are exceptions. The US will keep in place a 50 percent tariff on steel and aluminum. Von der Leyen suggested the tariff could be replaced with a quota system; a senior administration official said EU leaders had asked that the two sides continue to talk about the issue. Von der Leyen said there would be no tariffs from either side on aircraft and aircraft parts, certain chemicals, certain generic drugs, semiconductor equipment, some agricultural products, natural resources and critical raw materials. "We will keep working to add more products to this list," von der Leyen said, adding that spirits were still under discussion. A US official said the tariff rate on commercial aircraft would remain at zero for now, and the parties would decide together what to do after a US review is completed, adding there is a "reasonably good chance" they could agree to a lower tariff than 15 percent. No timing was given for when that probe would be completed. The deal will be sold as a triumph for Trump, who is seeking to reorder the global economy and reduce decades-old US trade deficits, and has already reached similar framework accords with Britain, Japan, Indonesia and Vietnam, although his administration has not hit its goal of "90 deals in 90 days." US officials said the EU had agreed to lower non-tariff barriers for automobiles and some agricultural products, though EU officials suggested the details of those standards were still under discussion. "Remember, their economy is $20 trillion ... they are five times bigger than Japan," a senior US official told reporters during a briefing. "So the opportunity of opening their market is enormous for our farmers, our fishermen, our ranchers, all our industrial products, all our businesses." Trump has periodically railed against the EU, saying it was "formed to screw the United States" on trade. He has fumed for years about the US merchandise trade deficit with the EU, which in 2024 reached $235 billion, according to US Census Bureau data.
Korea Herald
2 hours ago
- Korea Herald
Samsung Electronics wins W22.8tr order for chips
Samsung Electronics Co. said Monday it has secured a 22.8 trillion-won ($16.4 billion) order to supply semiconductors to a major undisclosed customer. In a regulatory filing, the South Korean tech giant said it signed a foundry contract set to be completed by Dec. 31, 2033. The company did not disclose the identity of the client or the specifics of the deal, citing "management confidentiality."
