Director General of Trade Negotiations Holds 'Meeting with Canadian Market Entry Companies'
Following recent remarks by President-elect Donald Trump regarding Canadian tariff measures and other policy changes by the new U.S. administration, the government has begun preparing countermeasures as Korean companies operating in Canada are expected to be significantly affected.
The Ministry of Trade, Industry and Energy announced that on the 5th, Jung In-kyo, the head of the Trade Negotiations Office, held a 'Meeting with Companies Operating in Canada' at the Lotte Hotel in Seoul to assess the impact of the new U.S. administration's trade policy changes toward Canada on Korean companies operating there and to discuss response strategies.
Canada is the largest core mineral producer in North America and has been recognized as a strategic base for entering the North American electric vehicle (EV) and battery markets alongside the development of the EV industry. It is also a region where Korean companies are actively expanding, especially in the battery and battery materials sectors. Batteries produced based on Canada’s abundant core minerals and electric vehicles equipped with these batteries can be traded tariff-free within the region if they meet the regional value content requirements under the United States-Mexico-Canada Agreement (USMCA). Additionally, they can satisfy the North American production requirements for eco-friendly vehicle subsidies under the Inflation Reduction Act (IRA). However, due to policy changes by the new U.S. administration, including the Canadian tariff measures mentioned as a campaign promise by President-elect Trump on his first day in office, Korean companies operating in Canada are expected to face considerable impacts. The Ministry of Trade, Industry and Energy is concerned that if Canada fails to resolve border issues such as illegal immigration and trade balance deficits, as Trump has stated he would impose a 25% tariff on all Canadian products from his first day in office, Korean companies in Canada will also be significantly affected.
Director Jung emphasized, "Our companies currently investing in Canada to target the North American market are beginning to see some results. The government is closely monitoring U.S. policy trends toward Canada and will actively cooperate with the Canadian government to minimize management uncertainties for our companies." He added, "The recent U.S. remarks on Canadian tariffs serve as a precedent for how the new U.S. administration may handle global tariff measures and responses going forward. We will utilize a thorough analysis of the developments as an asset to overcome potential trade risks that may arise for us."
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