Seoul shares start slightly higher despite tariff woes
The benchmark Korea Composite Stock Price Index climbed 7.15 points, or 0.23 percent, to 3,182.92 as of 11:20 a.m.
On Saturday, Trump said he has sent letters to key trade partners, including the European Union and Mexico, threatening duties of 30 percent on imports and setting the negotiations deadline on Aug. 1.
In Seoul, major shares started in mixed territory.
Market bellwether Samsung Electronics fell 0.8 percent, and its chipmaking rival SK hynix rose 2.21 percent.
Top carmaker Hyundai Motor added 0.72 percent, but its sister Kia retreated 0.6 percent.
K-pop powerhouse Hybe declined 0.18 percent, and entertainment giant CJ ENM increased 0.58 percent.
The local currency was trading at 1,376.55 won against the US dollar at 11:20 a.m., down 1.15 won from the previous session. (Yonhap)
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Korea Herald
42 minutes ago
- Korea Herald
Trump threatens Russia with tariffs
WASHINGTON (AP) — President Donald Trump on Monday threatened Russia with steep tariffs and announced a rejuvenated pipeline for American weapons to reach Ukraine, hardening his stance toward Moscow after months of frustration about unsuccessful negotiations for ending the war. The latest steps reflect an evolving approach from the Republican president, who promised to swiftly resolve the war started by Russian President Vladimir Putin when he invaded Ukraine three years ago. Trump once focused his criticism on Ukrainian President Volodymyr Zelenskyy, whom he described as unwilling to compromise, but more recently has expressed growing irritation toward Putin. 'My conversations with him are very pleasant, and then the missiles go off at night,' Trump said. He complained that 'it just keeps going on and on and on.' Trump said he would implement 'severe tariffs' unless a peace deal is reached within 50 days. He provided few details on how they would be implemented, but he described them as secondary tariffs, meaning they would target Russia's trading partners in an effort to isolate Moscow in the global economy. In addition, Trump said European allies would buy 'billions and billions' of dollars of US military equipment to be transferred to Ukraine, replenishing the besieged country's supplies of weapons. He made the announcement in the Oval Office alongside NATO Secretary-General Mark Rutte. Included in the plan are Patriot air defense systems, a top priority for Ukraine as it fends off Russian drones and missiles. Doubts were recently raised about Trump's commitment to supply Ukraine when the Pentagon paused shipments over concerns that US stockpiles were running low. Rutte said Germany, Finland, Canada, Norway, Sweden, the United Kingdom and Denmark would be among the buyers to supply Ukraine. He said 'speed is of the essence here,' and he suggested that some weapons would be rushed to Ukraine and later replaced with purchases from the US. Later Monday, Zelenskyy posted about having spoken with Trump by phone and said he 'discussed the necessary means and solutions with the President to provide better protection for people from Russian attacks and to strengthen our positions.' Zelenskyy added that Trump had 'agreed to catch up more often by phone and coordinate our steps in the future.' Trump has long boasted of his friendly relationship with Putin, and he repeatedly asserted that Russia was more willing than Ukraine to reach a peace deal. He also accused Zelenskyy of prolonging the war and called him a 'dictator without elections.' But Russia's relentless onslaught against civilian areas of Ukraine wore down Trump's patience. In April, Trump urged Putin to 'STOP!' launching deadly barrages on Kyiv, and the following month said in a social media post that the Russian leader 'has gone absolutely CRAZY!.' While Rutte was in Washington, Trump's special envoy to Ukraine and Russia, retired Lt. Gen. Keith Kellogg, met with Zelenskyy in Kyiv. Zelenskyy said he had 'a productive conversation' with Kellogg about strengthening Ukrainian air defenses, joint arms production and purchasing US weapons in conjunction with European countries, as well as the possibility of tighter international sanctions on the Kremlin. 'We hope for the leadership of the United States, because it is clear that Moscow will not stop unless its ... ambitions are stopped by force,' Zelenskyy said on Telegram. Russia has pounded Ukrainian cities, including the capital, Kyiv, with hundreds of drones and cruise and ballistic missiles that Ukraine's air defenses are struggling to counter. June brought the highest monthly civilian casualties of the past three years, with 232 people killed and 1,343 wounded, the UN human rights mission in Ukraine said. At the same time, Russia's bigger army is making a new effort to drive back Ukrainian defenders on parts of the 1,000-kilometer front line. Trump confirmed the US is sending Ukraine more badly needed Patriot air defense missiles and that the European Union will pay the US for the 'various pieces of very sophisticated' weaponry. A senior Russian lawmaker, Konstantin Kosachev, said Trump's plan had 'only one beneficiary — the US military-industrial complex.' Germany has offered to finance two Patriot systems, government spokesperson Stefan Kornelius said Monday in Berlin. The country has already given three of its own Patriot systems to Ukraine. German Defense Minister Boris Pistorius was traveling to Washington on Monday to meet with Defense Secretary Pete Hegseth. 'We are determined to assume greater responsibility for Europe's deterrence and defense, while recognizing that the contribution of the United States of America remains indispensable to our collective security,' Pistorius told reporters. A top ally of Trump, Republican Sen. Lindsey Graham of South Carolina, said Sunday that the conflict is nearing an inflection point as Trump shows growing interest in helping Ukraine fight back against Russia's full-scale invasion. Although Trump had previously dismissed the effort as a waste of US taxpayer money, Graham told CBS' 'Face the Nation' that 'you'll see weapons flowing at a record level.' 'One of the biggest miscalculations Putin has made is to play Trump," he said. "And you just watch, in the coming days and weeks, there's going to be a massive effort to get Putin to the table.' Kirill Dmitriev, Putin's envoy for international investment who took part in talks with US officials in Saudi Arabia in February, dismissed what he said were efforts to drive a wedge between Moscow and Washington. 'Constructive dialogue between Russia and the United States is more effective than doomed-to-fail attempts at pressure,' Dmitriev said in a post on Telegram. 'This dialogue will continue, despite titanic efforts to disrupt it by all possible means.' Although Trump proposed targeting Russia with new tariffs, he expressed doubts about bipartisan legislation to punish the country even further. 'I'm not sure we need it,' he said. 'It could be very useful. We'll have to see.' The legislation increases sanctions and places 500 percent tariffs on products imported from countries that buy Russian oil, gas and other exports. Trump on Monday proposed unilaterally implementing 100 percent tariffs. 'I use trade for a lot of things,' he said. 'But it's great for settling wars.' Since Dec. 5, 2022, when the European Union banned Russian oil, China has bought 47 percent of Russia's crude oil exports, followed by India at 38 percent. Turkey and the EU have each accounted for 6 percent, according to the Center for Research and Clean Air, a Finnish nonprofit that tracks the energy industry. Zongyuan Zoe Liu, a senior fellow in China studies at the Council on Foreign Relations, doubted that tariffs would change the course of the war. 'Oil is fungible, and Russia has developed a nimble shadow fleet," he said. "So enforcement would be a challenge.' However, the tariffs could still have a dramatic effect, depending on how they're implemented. Adding a 100 percent tariff on China, on top of import taxes already in place, would essentially halt trade between the United States and China, the world's two largest economies.
Korea Herald
42 minutes ago
- Korea Herald
US adds 17% tariff on Mexican tomatoes
WASHINGTON (Reuters) — The Trump administration announced Monday a duty of about 17 percent on fresh tomatoes from Mexico, which account for two-thirds of the tomatoes eaten in the US, and the end of an export deal between the two countries. The Commerce Department said the US was withdrawing from a 2019 agreement with Mexico that suspended an antidumping duty investigation on Mexican tomatoes, whose exports to the US are valued at $3 billion a year. The move came as President Donald Trump's administration seeks to negotiate comprehensive trade agreements with virtually every trading partner after the president launched a dizzying series of tariff announcements in April. The US and Mexico first struck an agreement in 1996 to regulate Mexican tomato exports and address US complaints of unfair competition. The pact was last renewed six years ago to avert an antidumping investigation and end a tariff dispute. Mexico said in April it was confident that it could renew the tomato agreement when Washington said it intended to withdraw from the deal. The 17.09 percent antidumping duty is set at the percentage by which exported Mexican tomatoes have been unfairly underpriced in the United States, it said. "For far too long our farmers have been crushed by unfair trade practices that undercut pricing on produce like tomatoes," US Commerce Secretary Howard Lutnick said. Mexico's ministries of economy and agriculture said in a joint statement the US decision was "unfair" and against the interests of Mexican producers and the US industry. The government said it would help local tomato producers seek a deal to suspend the tomato duty as well as support them in seeking new international markets. Mexican tomato growers had offered proposals that were positive for the US, but were rejected for "political reasons," the statement added. A group of five Mexican agriculture associations, including from Baja California and Sinaloa states, said they were committed to working with the Mexican government to find solutions. "There are no countries in the world that can replace Mexican tomatoes in a market we have built through innovation and effort over the past 120 years," they said in a statement. Before Monday's announcement, some experts, as well as Trump's opponents from the Democratic Party, warned that prices of tomato products would rise. "Salsa will be pricier, shelves emptier, and groceries more expensive," US Representative Sylvia Garcia said on X on Friday. Trump on Saturday separately threatened a 30 percent tariff on Mexican imports starting Aug. 1 after weeks of negotiations with the country failed to reach a comprehensive trade deal. US growers have long sought protections from Mexican competitors who can often grow the fruits year round. The 2019 agreement was supposed to set a floor on pricing and provided for US border inspections of crops. But US growers have long argued that the arrangement had too many loopholes that allowed for dumping of Mexican fruits.
Korea Herald
2 hours ago
- Korea Herald
Seoul shares open lower amid tariff negotiations
Seoul shares opened lower Tuesday, bucking overnight gains on Wall Street, as investors remained cautious over US President Donald Trump's latest tariff threats. The benchmark Korea Composite Stock Price Index fell 12.34 points, or 0.39 percent, to 3,189.69 in the first 15 minutes of trading. Trump has notified key US trading partners of new tariff rates set to take effect Aug. 1 unless they offer improved terms in ongoing negotiations. Overnight, the Dow Jones Industrial Average rose 0.2 percent to 44,459.65, while the tech-savvy Nasdaq composite climbed 0.27 percent to 20,640.33. In Seoul, large-cap stocks were mixed. Top carmaker Hyundai Motor fell 1.6 percent, leading shipbuilder HD Hyundai declined 0.43 percent, and leading steelmaker POSCO Holdings shed 0.93 percent. Chipmaker SK hynix dropped 3 percent, LG Chem lost 0.73 percent, and No. 2 battery maker Samsung SDI declined 0.77 percent. Among gainers, market bellwether Samsung Electronics rose 0.64 percent, and leading battery maker LG Energy Solution climbed 0.6 percent. State-run utility Korea Electric Power Corp. jumped 4.06 percent, and top wireless carrier SK Telecom edged up 0.09 percent. The local currency was trading at 1,384.8 won against the US dollar at 9:15 a.m., down 3.6 won from the previous session. (Yonhap)
