Trump ups trade tensions with SKorea, welcomes new leader
WASHINGTON – President Donald Trump and South Korea’s new leader showed joint resolve on North Korea on Friday despite their divergent philosophies for addressing the nuclear threat, yet the U.S. opened up a new front of discord by demanding a renegotiation of a landmark 2012 trade pact between the two countries.
Concluding two days of meetings at the White House, Trump and President Moon Jae-in each delivered tough talk opposing North Korea’s development of atomic weapons that could soon threaten both allies.
The “reckless and brutal regime” requires a determined reply, Trump said. And Moon, who has long advocated outreach to Pyongyang, vowed a “stern response” to provo- cation, promising to coordinate closely with Trump as he looks to intensify economic and diplomatic pressure on North Korea.
While they avoided a potential conflict on the most burning national security crisis facing each country, they showed little harmony on trade.
Summoning the economic nationalism that has marked much of his international agenda, Trump highlighted America’s trade imbalance with South Korea. Twoway trade in goods and services was $144 billion last year, with the U.S. running a $17 billion deficit.
“The fact is that the United States has trade deficits with many, many countries, and we cannot allow that to continue,” Trump said. “And we’ll start with South Korea right now.”
Ahead of their first face-to-face discussions, South Korean companies announced plans to invest US$12.8 billion in the U.S. over the next half-decade. Nevertheless, Trump wasn’t placated.
He said the two sides would renegotiate a 2012 free trade agreement, calling it a “rough deal” for America, echoing the sentiments he has voiced about the North American Free Trade Agreement with Canada and Mexico.
The White House later confirmed Trump has asked his trade representative to begin the process of renegotiation.
Trump accused Seoul of helping steel reach the U.S. at unfairly low prices. It was an apparently reference to Chinese steel. Trump also demanded that market barriers to U.S. auto makers be lifted to give them “a fair shake at dealing with South Korea.”
To rub it in, Trump called on his top economic officials to address their grievances to Moon in front of journalists.
Commerce Secretary Wilbur Ross said the trade imbalance had grown sharply since the trade deal took effect due to unfair “rulemaking” governing U.S. industrial products entering South Korea, particularly autos.