“If Trump’s goal here is to strike deals that will lower foreign barriers to American exports and deliver better trading conditions for American manufacturers (who rely on imports), then hiking tariffs on South Korea makes startlingly little sense.”
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“the new tariffs seem to violate an existing trade deal between the U.S. and South Korea. That deal, the U.S.-Korea Free Trade Agreement, was signed in 2007 by President George W. Bush and implemented in 2012. Under the terms of the deal, about 95 percent of the goods traded between the two countries are imported tariff-free. Among other things, that deal put an end to high South Korean tariffs on American cars and light trucks, which has boosted American exports and U.S. auto manufacturing jobs.
On the whole, the deal has been good for both countries. Bilateral trade between the U.S. and South Korea expanded nearly 70 percent in the first 10 years that the deal was in place. As the Heritage Foundation noted in 2022, the deal was particularly good for American farmers (who saw exports to South Korea hit record highs) and for foreign investment in American industries (South Korean investment in the U.S. nearly tripled during the deal’s first decade in force).”
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“Trump himself signed a renegotiated version of that same trade deal in 2018. The so-called KORUS 2.0 rolled back some of the free trade provisions in the original deal—most notably, it limited exports of Korean steel to the U.S. and postponed a planned elimination of the U.S. tariff on imported light trucks.
Still, it was mostly “a minor tweak” to the previous deal, as the Cato Institute termed it at the time.
Trump called the reworked deal “fair and reciprocal” and said it was “a historic milestone in trade.”
Now, less than seven years later, he’s effectively torn up that deal. Or he’s pretending that it never existed (or he forgot about it).
So, here’s the question: What is the White House hoping to accomplish with this latest maneuver?
If the goal is to lower tariffs across the board, then KORUS already did that. If the goal is to increase American exports to foreign countries by getting them to lower their trade barriers, then KORUS has already done that too. If the goal is to allow Trump to renegotiate the supposedly flawed trade deals from previous generations of American leaders, then KORUS 2.0 did that.
And, of course, if the goal is to strike more deals with more countries—as the White House keeps claiming—then this seems to be a step in the wrong direction. What other leader will be willing to negotiate seriously with this administration, knowing full well that it does not respect the deals it reaches?”
“Trump said the tariffs on Japan and South Korea would be separate from any “sectoral” tariffs that he imposes. That appears to refer to the duties that he has already imposed on autos, auto parts, steel and aluminum under Section 232 of the 1962 Trade Expansion Act, which gives the president broad authority to restrict imports to protect national security.”
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“Trump said he was imposing the duties to help reduce the “very persistent” trade deficits with the two countries — meaning they export more goods to the U.S. than they buy from the U.S. — which the president blamed on Japan and South Korea’s tariffs and other trade barriers.
However, most economists disagree with that analysis, saying that macroeconomic factors like relative savings rates play more of a role in driving the overall U.S. trade deficit.”
“Tehran has suspended cooperation with the International Atomic Energy Agency (IAEA), Iran’s President Masoud Pezeshkian announced Wednesday, according to state media reports.
The move marks a significant stepback in Iran’s international cooperation after Washington’s dramatic June 21 strikes on its nuclear enrichment facilities.”
“The Pentagon has halted shipments of some air defense missiles and other precision munitions to Ukraine due to worries that U.S. weapons stockpiles have fallen too low.
The decision was driven by the Pentagon’s policy chief, Elbridge Colby, and was made after a review of Pentagon munitions stockpiles, leading to concerns that the total number of artillery rounds, air defense missiles and precision munitions was sinking, according to three people familiar with the issue.”
The Iranian government is corrupt and needs enemies to hold its people together. This is why it treats the U.S. as the great Satan and Israel as the little Satan. There’s no deep reason why Israel and Iran should be enemies or why Iran and the U.S. should be enemies.
“China on Friday signaled it would approve the export of rare earth minerals to the US, hours after White House officials said the two sides had reached a deal, in what would be a major breakthrough following weeks of negotiations over US access to the key materials.”
“The Iranian parliament, led by the charismatic Prime Minister Mohammad Mossadegh, was trying to limit the power of the monarch, Shah Mohammad Reza Pahlavi. Mossadegh nationalized the oil fields, provoking a British blockade, while also clashing with the shah over domestic policy.
Mossadegh trusted the United States as a neutral mediator, but the feeling wasn’t mutual. The Eisenhower administration suspected that Mossadegh was too close to communists, and the CIA supported a coup d’etat by destabilizing the country. In August 1953, after months of protests subsidized by the U.S. and the U.K., monarchist generals in contact with the CIA surrounded Mossadegh’s house with tanks, bringing the shah back to near-absolute power.
Instead of allowing Britain to regain its dominance over Iran, the Eisenhower administration forced Iran to accept an American-led oil consortium. And the CIA helped train the shah’s fearsome new secret police, the SAVAK. When the shah finally fell in 1979, young revolutionaries took revenge by raiding the U.S. embassy, which they called a “den of spies,” and holding everyone inside hostage for more than a year. That began a 46-year conflict that continues to this day.”