01:00South Korea is one of America's most important trading partners.
01:04Its economy is deeply export-driven, and the U.S. is a key destination.
01:10In fact, total U.S.-South Korea goods trade hit nearly $200 billion last year.
01:16But it also left the U.S. with a $66 billion trade deficit.
01:23And that deficit has long been a target of Trump's trade strategy.
01:27The immediate impact was fast.
01:32Shares of major South Korean companies, including Hyundai, dropped.
01:37Investors feared one thing, loss of competitiveness in the U.S. market.
01:42This comes at a sensitive time.
01:47Earlier tariff pressures in 2025 already led to flat export values and a 0.4% drop in export volumes.
01:57Now, economists warn this move could slow GDP growth and create a negative income effect across key sectors.
02:05Let's break down the sector's hit hardest.
02:12Automotive first.
02:15South Korean cars from Hyundai to Kia just got more expensive in America.
02:20That means lower sales, tighter margins, and potential job losses back home.
02:27Pharmaceuticals next.
02:28Higher tariffs could raise drug prices in the U.S. while squeezing South Korean exporters in a fast-growing industry.
02:38And lumber.
02:41A key input for construction now caught in the crosshairs, adding pressure to already fragile supply chains.
02:48And if tensions escalate, semiconductors and electronics could be next.
02:56But this story doesn't end with South Korea.
03:00Trump has also signaled similar pressure on Canada, sending a clear message to allies and rivals alike.
03:08Comply or pay.
03:09For Japan, the EU, and emerging markets, this could accelerate a shift away from U.S. trade dependence, pushing new regional deals, especially in Asia.
03:23Globally, the risk is familiar.
03:26Higher costs, disrupted supply chains, and escalating trade tensions.
03:31Bottom line, one post, one policy signal, and a reminder that in today's world, trade wars can restart in real time.
03:41And this time, the ripple effects may be just getting started.
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