Concerns Over Intensified Export Competition Between Korea and China Due to Trump's Tariffs... Exchange Rate Surges to 1,470 Won
- It is projected that export competition between Korea and China may intensify due to Trump's tariffs.
- The won-dollar exchange rate surged to 1,470 won, expanding concerns over trade friction.
- Some potential benefits for Korea from the tariff war are also expected.
- The article was summarized using an artificial intelligence-based language model.
- Due to the nature of the technology, key content in the text may be excluded or different from the facts.
Dollar Index rose by 1.34% compared to the previous trading day
International Finance Center: "Potential for expanded trade friction between China and emerging countries"
There are concerns that export competition between Korea and China may intensify due to the additional tariffs imposed by the United States on China. As fears of a tariff war initiated by President Trump grow, the won-dollar exchange rate surged to 1,470 won during the day on the 3rd.
On this day, the Dollar Index, which indicates the value of the dollar against six major currencies, recorded 109.619, up 1.34% from the previous trading day.
The International Finance Center stated in a report, "With the imposition of tariffs by the U.S., there is a concern that China may engage in more overproduction, and if Chinese companies turn their exports to other countries, competition in the global export market with our country may become more intense."
In a recent survey, Chinese companies perceived a possibility that the U.S. might actually impose tariffs of up to 60%, and in such a case, they expressed an intention to expand exports to third countries, according to the International Finance Center's analysis.
Furthermore, it predicted that "the tariffs initiated by Trump could increase trade conflicts between the U.S. and advanced countries, and there is also potential for expanded trade friction not only between China and advanced countries but also between China and emerging countries."
The International Finance Center explained that "there is a possibility that about ten major emerging countries, including India and Brazil, may introduce tariff and non-tariff measures targeting Chinese imports."
However, the potential for some benefits from the 'tariff war' was also mentioned.
The International Finance Center projected that "in the process of the U.S. imposing tariffs and China's countermeasures, the export competitiveness of our products could increase not only in the U.S. market but also in the Chinese market, and some benefits such as increased investment in Korea by the G2 (U.S. and China) are expected."
It particularly added that "if the U.S. tariffs are limited to China, it is necessary to actively utilize the balloon effect where our country's export competitiveness to the U.S. increases."
Yoo Ji-hee, Hankyung.com Reporter keephee@hankyung.com

Korea Economic Daily

hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.PiCK News
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