US Trade Partners Deal With Tariff Impacts, Consider Self-Reliance

TaiwanPlus News

US ally South Korea is feeling the brunt of President Donald Trump's tariffs, which have been lowered after Seoul promised to invest US$350 billion in the US. But that deal is not yet complete and President Lee Jae Myung is concerned it could cause a financial crisis. Meanwhile, Indian Prime Minister Narendra Modi is urging his citizens to buy Indian-made goods in an attempt to counter the economic impact of tariffs on his country, which have been raised to 50%.

Transcript

00:00Months after the U.S. agreed to lower tariffs on South Korea, President Lee Jae-myung hints

00:05that deal may be off, warning that cutting rates from 25% to 15% on South Korean goods

00:11in exchange for 350 billion U.S. dollars in investment could harm the country's economy.

00:18Without a currency swap, if we withdrew 350 billion U.S. dollars in the manner that the

00:25U.S. is demanding and invested all this cash in the U.S., South Korea would face another financial

00:32crisis. In an exclusive interview with Reuters, Lee warned that a bad deal could result in a meltdown

00:38similar to the 1997 Asian financial crisis. South Korea has been working to maintain its

00:44relationship with the U.S. after a change in leadership over the past year. Both its economic

00:49and military alliances are being tested. Our government and I personally see the need

00:57to increase defense spending and defense self-reliance. We are already planning additional

01:03investments. Therefore, we do not think it desirable for the U.S. to unilaterally shoulder losses

01:10for peace and stability on the Korean Peninsula. There appears to be little conflict on that

01:16issue. In dealing with regional tensions, Lee also said that peace and stability in the

01:21Taiwan Strait was important. The U.S., Taipei's biggest backer, has been urging it to increase

01:26defense spending against China, which threatens to take Taiwan by force if necessary. Meanwhile,

01:31in India, Prime Minister Narendra Modi urged citizens to help the country deal with U.S. tariffs

01:37by buying Indian-made goods.

01:39This reform will accelerate the growth story of India, make business easier, make

01:46investment attractive, and will make every state equal in the path to development.

01:50Trump doubled tariffs on Indian goods to 50 percent in retaliation for the Southeast Asian

01:55ally buying Russian oil and weapons. An unofficial boycott on American brands like McDonald's,

02:01Pepsi, and Apple is underway in the country. Amid tariff tensions and quickly shifting policy,

02:06the U.S.'s allies are now looking at self-reliance as both a tool for negotiation

02:11and a safety net for their own security, economic and otherwise.

02:16Devin Tsai and Tiffany Wong for Taiwan Plus.

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