Hindustan Times ST (Jaipur)

Trump may delay Seoul trade pact until North Korea resolved

- Bloomberg feedback@livemint.com

President Donald Trump said he may delay a revamped trade deal the US reached with South Korea this week until after the nuclear confrontat­ion with North Korea is resolved.

“I may hold it up until after a deal is made with North Korea,” Trump said Thursday during a speech in Richfield, Ohio. “You know why? Because it’s a very strong card and I want to make sure everyone is treated fairly and we’re moving along very nicely with North Korea.”

The new Korus agreement was reached as Trump has been planning to meet with Kim Jong Un, the North Korean leader, later this spring. The president will need the support of the Seoul government in negotiatio­ns to get Kim to abandon his nuclear ambitions.

Trump’s statement on a delay took some White House officials by surprise, and the press office didn’t immediatel­y respond to requests to clarify his intentions. The US trade representa­tive’s office also had no immediate comment. Officials in South Korea were confused by Trump’s remarks.

“We’re trying to grasp the genuine intent behind President Trump’s remarks,” South Korean minister of trade, industry and energy Paik Un-gyu said Friday in Seoul. “We regard the renegotiat­ion of the free-trade

WASHINGTON:US

China’s finance ministry said on Friday it has introduced tax breaks for chipmakers made in the country, at a time when the government is seeking to reduce dependence on foreign semiconduc­tors amid trade tensions with the United States over technology transfers.

The move comes as the United States is considerin­g imposing tariffs on $50 billion

agreement as having already been completed smoothly.”

The presidenti­al Blue House said it was “trying to verify his intention through various channels.” South Korea expected “to proceed with documentat­ion and legal review through consultati­ons with the US during April” and sign the new deal when the process was complete, the Blue House said in a text message.

Moments before Trump suggested he would delay the renegotiat­ed agreement, he hailed it as “a wonderful deal” and criticized the existing trade agreement with South Korea as “a horror show.”

“Trump’s remarks were a political gesture to show he is in control of both the North and worth of Chinese exports, citing discrimina­tory trade practices in hightech sectors, including semiconduc­tors.

Chipmakers will be exempt from corporate taxes for two to five years followed by partial deductions, the ministry said in a notice posted on its website.

The exemptions cover a range of products, from very basic to cutting-edge chips, for use in computers, smartphone­s and other electronic devices.

BEIJING:

South Korean issues, rather than a sign of dissatisfa­ction of the Korus negotiatio­n,” said Je Hyun-jung, a deputy general manager at the Korea Internatio­nal Trade Associatio­n. “Trump can’t sign off on the deal now anyway as it takes some time for the two countries to settle details of Korus, at least a month or two,” she said.

The renegotiat­ed trade deal, announced this week, doubled to 50,000 the number of cars each US automaker can sell in South Korea without meeting local safety standards. But in a briefing in South Korea, the country’s trade minister, Kim Hyun-chong, downplayed the significan­ce of the concession.

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