"Trump Imposes Tariffs on Many Products...
No Tariffs Yet on South Korean Cars"
As U.S. President Donald Trump expands the global 'tariff war,' it has been revealed that automobiles contribute significantly more to the U.S. trade deficit compared to other items in the case of South Korea.
On the 13th (local time), Bloomberg News analyzed the scale of the U.S. trade deficit by country and product, stating that the Trump administration is aggressively pushing tariff policies with the goal of eliminating the trade deficit.
According to data from the U.S. Census Bureau presented by Bloomberg News, last year the U.S. had a goods trade deficit of $1.2 trillion (approximately 1,744 trillion KRW). By country, China had the largest deficit at $295.4 billion, followed by the European Union (EU) at $235.6 billion, and Mexico at $171.8 billion. South Korea ranked seventh, following Vietnam, Taiwan, and Japan.
By product category, in the case of South Korea, the automobile sector accounted for a large portion of the U.S. trade deficit. The U.S. trade deficit in automobiles was highest for Mexican passenger cars and electric vehicles at $45.1 billion, followed by Japanese passenger cars and electric vehicles at $39.1 billion, South Korean passenger cars and electric vehicles at $35.3 billion, Mexican commercial vehicles at $35.1 billion, and German passenger cars and electric vehicles at $17.4 billion. Bloomberg News noted, "Although President Trump has imposed tariffs on many products so far, tariffs have not yet been imposed on automobiles from South Korea and Japan."
In the machinery and electronics sector, the U.S. trade deficit due to imports of Chinese smartphones was the largest at $49.9 billion, followed by Mexican computers and parts at $43.5 billion. However, the trade deficit for Chinese smartphones does not reflect intellectual property rights of U.S. companies such as Apple.
South Korean computer parts ranked 14th in the U.S. trade deficit share within the machinery and electronics sector, and South Korean semiconductor media such as memory ranked 25th.
In the energy products sector, Canadian crude oil was the largest at $88.2 billion, followed by Mexican crude oil at $12.1 billion.
Bloomberg News pointed out that although President Trump aims to increase domestic production through tariffs, the trade deficit is a result of multiple complex factors including the dollar’s status as the global reserve currency, Americans’ preference for inexpensive imports, and the global supply chains of U.S. companies.
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