KORUS Details Emerging – South Korea Agrees to 30% Reduction in Steel, Accepts Doubling of U.S. Autos, Accepts 20 Year Extension on Truck Tariff…

The actual announcement of KORUS (“KOR”+”U.S.”), the renegotiated U.S. and South Korea trade deal, has yet to be made by U.S. Trade Representative Robert Lighthizer, Commerce Secretary Wilbur Ross and U.S. President Donald Trump.  However, more details are surfacing inside KORUS media leaks.  Fantastic job by Lighthizer!

TOP LINES:

  • U.S. Gains twice as many exported vehicles into S-Korea (50k per manufacturer, per year).  [No word on possible Kia / Hyundai tariff or quota – RE: “unlikely”]
  • South Korea drops ridiculous customs inspection barriers. [Trade trickery ploy]
  • U.S. retains 25% Tariff on S-Korea pickup trucks with extension for 20 years.
  • South Korea gets two year exemption from a 25% U.S. steel tariff, but must drop steel export level to 70% of prior two years shipments. (A controlled reduction of 30%).

(Via AP) The new deal doubles — to 50,000 — the cars each U.S. automaker can export annually to South Korea, reduces bureaucratic barriers to American products and extends a 25 percent U.S. tariff on South Korean pickup trucks by 20 years, through 2041.

South Korea escapes America’s new 25 percent tariff on imported steel — but must accept quotas on steel exports equal to 70 percent of its average annual shipments to the United States between 2015 and 2017.

The officials spoke on condition of anonymity in order to discuss the policy ahead of an official announcement.

The United States this month began imposing the steel tariffs, saying imports jeopardized U.S. national security. But it has been suspending the duties on allies like the European Union, Canada and Mexico.

The U.S. Treasury Department is also in talks on a deal to prevent Seoul from deliberately pushing its currency lower to give South Korean exporters a competitive advantage. A formal agreement on currency would be unprecedented — but it wouldn’t have teeth, because it would include no enforcement mechanism.

The U.S. trade deficit in goods with South Korea — nearly $23 billion last year — widened after the original pact took effect in 2012, one reason Trump has denounced it. Trade in autos has been especially lopsided: South Korea last year exported to the United States 929,000 passenger vehicles worth $15.7 billion. By contrast, the U.S. shipped to South Korea fewer than 53,000 autos, worth just $1.5 billion, according to the U.S. Commerce Department.

The United States says South Korea has used non-tariff barriers, such as rigorous customs inspections, to block U.S. products.

Trump’s complaints about South Korean trade practices have caused friction between the two allies at a crucial time, as he prepares for a meeting with North Korea’s reclusive leader, Kim Jong Un.

Unions at South Korea’s two-largest automakers, Hyundai Motor Co. and Kia Motors Corp., have already blasted the new agreement for blocking access to the fast-growing U.S. pickup truck market. “It is a humiliating deal that accepts Trump’s strategy to preemptively block South Korean pickup trucks,” Hyundai Motor Company’s labor union said in a statement.  (read more)

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This entry was posted in ASEAN, Donald Trump, Economy, Election 2018, media bias, Trade Deal, Transportation, Uncategorized, US Treasury, USA. Bookmark the permalink.

80 Responses to KORUS Details Emerging – South Korea Agrees to 30% Reduction in Steel, Accepts Doubling of U.S. Autos, Accepts 20 Year Extension on Truck Tariff…

  1. wheatietoo says:

    ” Fantastic job by Lighthizer!”
    ___

    Yes! Lighthizer continues to be impressive, doesn’t he.

    Is it true that our team included something about South Korea starting to “pay us” something for our defending them?
    I read something about this…and hope that it’s true.

    Liked by 21 people

    • sundance says:

      No details yet, but I think those payments would be *included* in the final trade value. Not necessarily a direct payment. (If that makes sense)

      Liked by 23 people

      • wheatietoo says:

        Sort of a ‘barter’ then, for lack of a better term?
        Maybe they’ll call it a “consideration”.

        Getting ‘anything’ is far better than getting nothing, like we’ve been getting for decades.

        Didn’t Pres Trump already slap a tariff on washers/dryers/refrigerators from S. Korea?
        I think he did.
        So much Winning…it’s getting hard to keep it all straight.
        😀

        Thanks, Sundance.

        Liked by 10 people

      • fleporeblog says:

        From the Breitbart article, the 10% Aluminum tariff remains in place!😂

        From the article linked above:

        U.S. tariffs on imports of aluminum will remain at the 10 percent imposed.

        Liked by 6 people

      • TMonroe says:

        Kinda like a certain country paying for a wall indirectly.

        Liked by 2 people

      • The US government can make some calculation as to the tax revenue value of the trade package and roughly estimate how much “payment” is in there for the protective military umbrella in the region. Probably distribute that value into a number of nooks and crannies in the deal and avoid direct payments, to save face.

        Like

      • Dennis Leonard says:

        You need to go read this and tell me how they are twisting the truth,to make it kook like nothing,

        http://money.cnn.com/2018/03/27/news/economy/us-south-korea-trade-deal/index.html

        ” Under the revamped deal, each US carmaker will be allowed to export 50,000 vehicles per year to South Korea that meet American safety standards, up from 25,000 previously. Beyond that threshold, cars shipped from the United States will have to comply with South Korean safety rules, which American companies say put them at a disadvantage.

        But analysts say the increased quota is unlikely to make much difference anytime soon. No US automaker sold more than 11,000 cars in South Korea last year. “

        Like

  2. Curry Worsham says:

    There is such a thing as a good leak!

    Liked by 2 people

  3. Minnie says:

    Thank you, Rep. Lighthizer!

    Thank you, Secretary Ross!

    Thank you President Trump!

    God Bless America!!!

    Liked by 9 people

    • LafnH2O says:

      Amen and Amen

      Liked by 1 person

    • fleporeblog says:

      God is truly blessing our country and our President! I loved this paragraph from the article:

      Unions at South Korea’s two-largest automakers, Hyundai Motor Co. and Kia Motors Corp., have already blasted the new agreement for blocking access to the fast-growing U.S. pickup truck market. “It is a humiliating deal that accepts Trump’s strategy to preemptively block South Korean pickup trucks,” Hyundai Motor Company’s labor union said in a statement.

      These POS should be grateful that our men and women stand ready and willing to die to protect the citizens of South Korea 🇰🇷! You want to complain about fairness. If we walk away, you would be willing to sell your souls to have us come back.

      This is the price you have to pay for our country to protect you day in and day out so that you get to sleep at night.

      AMERICA FIRST IS OUR CREDE!

      Liked by 9 people

  4. mopar2016 says:

    I’m thinking that a few former presidents need to pay attention. This is how it’s done.
    Obviously they didn’t care if the US got lousy deals all over the globe.
    What a bunch of losers.

    Liked by 16 people

  5. Carrie2 says:

    I listened to Jimmy Carter on PBS News Hour, which I don’t like as 100% democrat garbage, but my husband does like to listen to it, and Jimmy berating what we have seen in Trump deals but Jimmy forgets how he ruined America with crappy deals and putting no best foot forward for America. He is the cause of a lot of our international problems as a very very poor president. Sticking to his faith and building houses works best for him and keeping his mouth shut would work 100% better. It boils down to Trump is not a politician so he doesn’t know what he is doing. Really? And you did what to improve our country and money and expenses? Arrgh!

    Liked by 12 people

  6. Athena the Warrior says:

    Gee put a businessman who loves America in charge and look what happens. I wonder if the media pundits on the right who are “Trump friendly” will admit they were wrong about what would happen with tough tariff talk.

    Hmmm…

    Liked by 5 people

  7. wolfmoon1776 says:

    I think it’s very clear now that multilateral trade agreements were a way to triangulate against America, with the mythical payoff of “good will” as the chump balance for the nasty remainder that always SKAREWED America and enriched those who knew the cheats – primarily China.

    Liked by 11 people

    • wheatietoo says:

      Yep.
      But just because China is the biggest cheater, doesn’t mean they’re the one who cheats the most…they all cheat to some degree.
      Mexico has been cheating, bigtime!

      We have been in a trade war for decades.
      More like…forever.
      All the other countries have been waging this trade war against us.

      The big problem has been, that these Trade Agreements are basically ‘business deals’.
      And instead of getting businessmen to handle these ‘business deals’ with other countries…we’ve had lawyer-politicians who are terrible at negotiating…and don’t think like businessmen.

      Liked by 7 people

      • wolfmoon1776 says:

        Great point. These people were getting rooked like crazy!

        Liked by 2 people

      • I’m not disagreeing with you per se, but honestly I think you’re being too kind. I’m convinced many negotiating the US position were more than willing to be “terrible at negotiating”.

        It’s not all that hard to find a solution with foreign parties that works. I’ve done so with many of them from various parts of the world armed with little more than basic common sense. Seems to me, much cleverness has been spent figuring out how to lose with stealth.

        Liked by 3 people

    • When the Swiss were voting whether to join the EU, one of the strongest anti-Eu arguments was, “Well, we’re doing fine with all the bilateral agreements we have!”

      A more humorous and hence persuasive, was “The bureaucrats in the capital want to have another, higher layer of bureaucracy, live in Brussels and feel more important!:

      Liked by 1 person

  8. sunnydaze says:

    Now take a seat and shut up all you stupid RINOs and Pundits and #DemIdiots who whined about the possibility of the USA getting better trade deals.

    Drives me crazy when someone says “it’ll never work” when they have never even TRIED- in the *slightest*- to make it work. And further, they have no *intention* of ever trying. blech. Losers.

    ugh. All those GOPe Primary competitors of Trump’s really hated him for suggesting that better deals were possible, and PREFERABLE.

    Bunch of a$$es.

    Liked by 8 people

  9. Kenji says:

    All moves in the RIGHT direction! Winning!
    Question: Did Obama even KNOW that America had trade imbalances? Or did he intentionally handicap America’s businesses and workers?

    Liked by 2 people

  10. Kerry Gimbel says:

    The definition of a loser is simply not trying. And not doing something because everybody says it shouldn’t be tried.
    I must say, wolverines have become my favorite animals!

    Liked by 4 people

  11. John Franco says:

    This is what you call WINNING!!! Why previous administrations and Congresses thought it was a great idea to hold back the reigns of this country’s economic power is beyond me. President Trump is proving that we can be both economically strong and independent and still be generous with our trade partners and their economie as well…just not at the expense of the American worker!

    Liked by 2 people

  12. Kerry Gimbel says:

    Thanks for the Wolverine clip!

    Liked by 2 people

  13. TMonroe says:

    Public servants aiding production, rather than redistribution for bureaucratic enrichment. What a concept.

    Like

  14. scott467 says:

    “The United States this month began imposing the steel tariffs, saying imports jeopardized U.S. national security. But it has been suspending the duties on allies like the European Union, Canada and Mexico.”

    ________________

    What stops China and other abusers from using Mexico and Canada as a back-door entry to the U.S. market, just like they’ve been doing, for decades?

    Liked by 1 person

    • Guy-Blanc Déploré says:

      Almost nothing, which is why Mexico & Canada will either capitulate to US demands to close those loopholes during the ongoing NAFTA negotiations, or the Administration will give the six month notice to end NAFTA.

      Liked by 1 person

    • William Dorritt says:

      For lack of a better description,
      Canada and Mexico are back door or smuggling routs into the US, willing ones.

      China has been at war with the US for 30 years,
      trade should be drastically curtailed since it is unlikely China will implemented any agreement, they never have and will simply wait for the next Quisling Bush, Clinton, or Obama to get elected.

      The factories making low-value-add products in China should be replaced by similar factories in Mexico, and the 20 million illegal Mexicans living in the US sent home. This is how NAFTA was sold, the factories did open in Mexico, but were shipped to China a few years later for the zero-wage and zero-regulation environment China offers to the US Chamber of Commerce.

      Dollar stores can be renamed a Dollar and Five Cents.

      Liked by 2 people

      • Excellent:
        “The factories making low-value-add products in China should be replaced by similar factories in Mexico, and the 20 million illegal Mexicans living in the US sent home.”
        … or from any other Latin/South American country.

        Like

  15. scott467 says:

    “The U.S. Treasury Department is also in talks on a deal to prevent Seoul from deliberately pushing its currency lower to give South Korean exporters a competitive advantage. A formal agreement on currency would be unprecedented — but it wouldn’t have teeth, because it would include no enforcement mechanism.”

    ___________________

    Whenever we find ourselves in the typical position of unrestricted benevolence to the world “just because”, we should ask ourselves what would THEY do if the roles were reversed?

    What would South Korea do, if they were the biggest economy in the world, and we were cheating our asses off by manipulating the currency?

    Would they say ‘Aw shucks’, and stuff their hands in their pockets like Opie?

    Or would they come down on us like a ton of ACME bricks in a Roadrunner cartoon?

    I don’t understand why we act HELPLESS, when we are the 80,000 pound gorilla in the room.

    The enforcement mechanism is simple, and it ought to apply to every nation equally. If you manipulate your currency, the United States Treasury will lock you out of the international banking system.

    Ka-BOOM.

    It’s the same basic strategy DJT used against North Korea and anybody who did business with North Korea.

    Liked by 1 person

  16. Justice Warrior says:

    I am so grateful for Sundance’s blog, our awesome new business team and President Trump!!! Yay 😀

    Liked by 5 people

  17. Publius2016 says:

    These jokers will put anyone quote in to sully President Trump! Yes, South Korean unions see that they can’t take advantage anymore and blame our President…EXACTLY! We have union workers in US too and they work just as hard!

    Liked by 1 person

  18. Rynn69 says:

    A terrific detailed report from Sundance. This is extremely exciting. The details of the KORUS trade deal show exactly how PDJT and his team are putting America First.

    Liked by 1 person

  19. William Dorritt says:

    Quotas and Tariffs work, they protect American Workers.
    US companies compete against foreign counties in many cases, very uneven playing field.

    Like

  20. Perhaps President Trump will include TRADE DEFICIT REDUCTION Milestones as the “Teeth” for South Korea, with automatic kick-in of the Steel Tariff for Enforcement.

    … Recalling that he’s already asked China to produce their PLAN for a $100 BILLION Trade Deficit Reduction.

    RE:
    “A formal agreement on currency would be unprecedented — but it wouldn’t have teeth, because it would include no enforcement mechanism.

    The U.S. trade deficit in goods with South Korea — nearly $23 billion last year — widened after the original pact took effect in 2012, one reason Trump has denounced it.”

    Like

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