Trump scales back tariffs for allies, escalates trade pressure on China Combo photo of U.S. President Donald Trump and Chinese President Xi Jinping/ AFP-Yonhap SEOUL, April 10 (AJP) - President Donald Trump abruptly scaled back his sweeping tariff plan on April 9, temporarily exempting about 70 countries from the brunt of his trade actions while dramatically escalating pressure on China with a punitive 125 percent tariff. The policy reversal came just 13 hours after the White House enacted a set of country-specific reciprocal tariffs that rattled global markets and drew criticism from U.S. allies. Under the revised framework, trading partners such as South Korea, Japan, and members of the European Union will face only a 10 percent baseline tariff for the next 90 days. “I thought that people were jumping a little bit out of line,” Trump told reporters, defending the abrupt shift. “They were getting yippy, you know, they were getting a little bit yippy, a little bit afraid.” While key allies were granted temporary relief, China found itself further targeted. The White House raised its tariff on Chinese goods to 125 percent, up from the 104 percent rate announced just a day earlier — a move signaling intensifying trade tensions between Washington and Beijing. White House spokesperson Caroline Leavitt defended the decision, saying the increased tariffs reflected China’s retaliatory stance and history of unfair trade practices. “Countries like China, who have chosen to retaliate and try to double down on their mistreatment of American workers, are making a mistake,” Leavitt said. “President Trump has a spine of steel, and he will not break.” Though the administration suspended the implementation of additional country-specific tariffs for now, existing sector-specific duties — including 25 percent tariffs on steel, automobiles, and certain other categories — remain in effect. The revised policy follows an intense round of behind-the-scenes diplomacy. Treasury Secretary Scott Bessent said that outreach from numerous governments prompted the temporary adjustment and indicated that trade negotiations are underway. “This has been his strategy all along,” Bessent said, referencing Trump’s decision to pause further tariffs for several U.S. allies. He confirmed that South Korea, Japan, and Vietnam had each initiated contact with Washington in an effort to de-escalate tensions. When pressed on whether the latest measures amounted to a full-blown trade war, Bessent rejected the notion, framing the issue instead as a targeted response to "bad actors" — with China squarely in focus. “China is the biggest source of the U.S. trade problems,” he said. Trump, meanwhile, struck a more conciliatory tone when asked about future negotiations with Beijing. “China wants to make a deal,” he said. “They just don’t know how quite to go about it.” 2025-04-10 10:36:17

Korean chipmakers on edge as Trump's agenda roils global supply chain A semiconductor wafer on display at Samsung Electronics headquarters in Seocho-gu, Seoul/ Yonhap Editor's Note: This is the third in a series of stories examining how the Trump administration's economic policies affect South Korea's key industries. From trade restrictions to shifting global supply chains, we explore the challenges businesses faced, how they adapted, and the lasting effects on the country's economy. SEOUL, April 10 (AJP) - South Korea's semiconductor companies are navigating a new wave of uncertainty as U.S. President Donald Trump escalates his campaign against federal subsidies for the chipmaking industry, a shift in U.S. industrial policy that could ripple through the global technology supply chain. In a March 4 address to Congress, Trump called for the repeal of the CHIPS Act, a landmark 2022 bipartisan initiative that earmarked $52.7 billion to revitalize domestic semiconductor manufacturing. The law was widely seen as a cornerstone of the Trump administration's strategy to reduce reliance on foreign chipmakers and bolster America's technological edge. The changing U.S. policy reverberated across the global chipmaking industry just as Taiwan Semiconductor Manufacturing Company, or TSMC, unveiled a $100 billion investment in its Arizona operations. Days later, Trump intensified his criticism, asserting that semiconductor firms "do not need the money," and claimed credit for TSMC's U.S. expansion. "All I did was say, if you don't build your plant here, you're going to pay a big tax," Trump said on April 8. His rhetoric coincided with a new round of trade pressure. On April 3, the Trump team announced sweeping 25 percent "reciprocal" tariffs on select imports from South Korea, though the semiconductor industry narrowly avoided immediate inclusion. The White House later paused the levies for 90 days, leaving in place a 10 percent baseline tariff. However, major South Korean exports — including automobiles and auto parts — have already been subject to full 25 percent tariffs since March 26, raising concerns about indirect consequences for the chip sector. For Samsung Electronics, the crown jewel of South Korea's tech industry, the stakes are mounting. Its foundry division held just 8.1 percent of the global market in the fourth quarter of 2024, compared to TSMC's dominant 67.1 percent share. On April 3, TSMC reportedly met with Intel to discuss a joint venture, a move that industry analysts say may have been encouraged by Trump as part of efforts to rejuvenate the domestic chip industry. TSMC's U.S. momentum comes as it faces a 34 percent tariff at home in Taiwan and scrutiny over alleged ties to Chinese telecommunications giant Huawei. "Samsung has reduced its foundry facility investment budget to less than 5 trillion won this year, about half of last year's amount, due to declining factory utilization," said an industry source. The official added that a potential TSMC-Intel alliance could further complicate Samsung's expansion plans in the United States, particularly as progress on its Taylor, Texas, facility has reportedly slowed. On March 31, the White House introduced a new "United States Investment Accelerator" tasked with overseeing the CHIPS program office and negotiating what it described as "better deals" than those under the current administration. Industry officials believe the initiative could foreshadow both stricter subsidy requirements and more robust investment mandates. Adding to the uncertainty, Trump has repeatedly floated the possibility of a 25 percent tariff on semiconductor imports, most recently reaffirming the proposal on April 3, without offering a timeline. Meanwhile, U.S.-based GlobalFoundries and Taiwan's UMC — the fourth- and fifth-largest players in the foundry space — are reportedly exploring a strategic alliance that could challenge Samsung's second-place position. SK hynix, another major South Korean chipmaker, is faring better in the short term. The company is seeing robust demand for its high-bandwidth memory (HBM) products, a critical component in artificial intelligence applications and widely adopted by Nvidia. But even there, geopolitical undercurrents loom. Some clients, anticipating future trade friction, have accelerated orders in recent months. "The pull-in effect and declining inventories have created favorable conditions," said Lee Sang-rak, SK hynix's head of global sales and marketing, during a March 27 shareholder meeting. "But it is uncertain how long this will last." Despite rising interest in the U.S. market, South Korea's chip exports to the United States accounted for just 7.5 percent of its total last year — far behind China (32.8 percent), Hong Kong (18.4 percent), and Taiwan (14.5 percent), according to data from the Korea International Trade Association. Still, the prospect of sweeping U.S. tariffs has left many Korean executives and policymakers wary. Lee Jong-hwan, a professor of system semiconductor engineering at Sangmyung University, believes the impact may be less severe than feared. "Korean and Chinese companies already dominate the general-purpose memory market," he said. "Tariffs will raise costs for U.S. buyers more than they will hurt Korean producers. And in the high-bandwidth memory market, Korean firms are already ahead." 2025-04-10 10:30:05

From pizza to cream buns, baseball-themed treats soar "KBO Bread" series by SPC Samlip/ Yonhap SEOUL, April 9 (AJP) - On a sunny April afternoon, the stands at Jamsil Baseball Stadium pulse with energy. Fans in team jerseys cheer between bites of cream-filled buns, and vendors weave through the crowd with boxes of limited-edition pizza shaped for one-handed snacking — perfect for keeping the other hand free to wave rally towels. This is baseball season in South Korea. But beyond the roar of the crowd and the crack of the bat, another game is unfolding — one being played in boardrooms and branding meetings across the country. As the Korea Baseball Organization (KBO) enjoys an unprecedented surge in popularity, with more than 10 million fans flocking to stadiums last season and a new record set for the fastest one million in attendance, companies are rushing to align themselves with the sport — and its deeply devoted followers. Pizza chains, bakeries, convenience stores and even theme parks are tapping into the cultural moment with a slate of baseball-themed products and promotions aimed squarely at the fanbase. Earlier this week, Domino’s Pizza Korea unveiled its latest pitch: a baseball-themed snack created in partnership with the KBO. The product is intentionally elongated — designed, the company says, for ease of eating with one hand while cheering with the other. “We wanted to create something that truly fits into the fan experience,” said a spokesperson for Domino’s. “Baseball is a ritual here — it’s about food, friends, atmosphere. We’re adding to that.” Last month, SPC Samlip, one of Korea’s largest baked goods companies, released a line of “KBO Bread” featuring hidden collectible stickers of team mascots and star players tucked inside each package. Within just three days, more than one million units had flown off store shelves. Convenience store chains like CU have also jumped on the bandwagon, teaming up with the Doosan Bears and Yonsei University Dairy to offer baseball-themed cream buns. In their first week alone, the buns — each packaged with team logos and slogans — sold more than 120,000 units. “Professional baseball isn’t just a sport anymore — it’s a lifestyle, a cultural touchstone,” said one industry insider. “People don’t just watch the game; they live it. And that opens the door for marketing that feels like part of the experience rather than an interruption.” Indeed, some brands are going beyond food entirely. GS25, a convenience store chain, has begun converting select locations into immersive, baseball-themed stores, complete with locker room decor and team memorabilia. Meanwhile, Lotte World Adventure, one of the country’s biggest theme parks, is offering up to 42 percent discounts on admission for Lotte Giants season ticket holders throughout April. For fans, the fusion of commerce and baseball is just another part of the fun — another way to show loyalty, indulge in nostalgia, and feel connected to something bigger. “I bought the bread for the stickers,” said Kim Min-ji, a 27-year-old Twins fan waiting outside a stadium in Seoul. “But now I kind of like the bread, too. It’s silly, but it makes watching the game feel more special.” 2025-04-09 15:55:41

Fed may accelerate rate cuts as concerns over trade war mount Federal Reserve Chairman Jerome Powell/ AP-Yonhap SEOUL, April 9 (AJP) - The U.S. Federal Reserve may move more swiftly to cut interest rates amid mounting concerns over a potential economic slowdown, a shift driven in part by the Trump administration’s tariff policy, according to the Bank of Korea said in a report. Several major investment banks, including Barclays, Goldman Sachs, Nomura, and Wells Fargo, have revised their outlooks to reflect a greater likelihood of rate reductions in 2025, the BOK's New York office said. Morgan Stanley stood apart, reducing its forecast from one rate cut to none. On average, analysts at 10 investment banks now anticipate two rate cuts this year, up from a previous consensus of 1.7, reflecting growing unease across financial markets. The futures market has mirrored that sentiment. Projections for the federal funds rate in June have declined from 4.18 percent in late February to 4.02 percent as of April 4. Expectations for September have fallen more sharply, dropping from 4.07 percent to 3.60 percent in the same period. “Investment banks predominantly anticipate that higher-than-expected tariffs will place downward pressure on the U.S. economy while simultaneously creating upward pressure on inflation,” the report showed. “Analysts predict the Fed will begin rate cuts only after confirming inflation deceleration.” Inflation remains a pivotal concern. Expectations for March climbed significantly, with the one-year inflation forecast rising to 5.0 percent and the five-year outlook reaching 4.1 percent. Both figures represent substantial increases from the previous month — up 0.7 and 0.6 percentage points, respectively. 2025-04-09 11:13:52

Korea's entry into global bond index delayed to April 2026 South Korea's Minister of Economy and Finance Choi Sang-mok/ Yonhap SEOUL, April 9 (AJP) - South Korea’s long-anticipated inclusion in the World Government Bond Index (WGBI) has been postponed by five months, delaying potential inflows of tens of billions of dollars into the country’s sovereign debt market. FTSE Russell, the index provider, announced that South Korea will now enter the benchmark index in April 2026, rather than the previously scheduled November 2025. "We commend the commitment of South Korean market authorities in continuing initiatives that reflect the practical feedback of international market participants," said Nikki Stefanelli, global head of Fixed Income, Currencies and Commodities Index Policy at FTSE Russell. "These efforts are helping align their market with the highest standards for global bond investing." The delay is expected to temporarily defer an estimated $56 billion in foreign capital inflows into Korean government bonds — funds that were widely expected to help stabilize the currency and reduce borrowing costs amid growing economic pressures. South Korean finance officials attributed the rescheduling to operational concerns raised by Japanese investors, who reportedly requested additional time to adjust their trading procedures to South Korea’s market infrastructure. "The revised inclusion schedule incorporates investor feedback and aims to ensure a smoother transition," said Kim Jae-hwan, director general for international finance at the ministry. Still, the announcement comes at a sensitive time for South Korean policymakers, who are grappling with persistent fiscal challenges, including a second consecutive year of tax revenue shortfalls. Officials are in the early stages of drafting a supplementary budget that could require increased sovereign debt issuance. While government representatives insist the delay is purely technical, some analysts believe rising external and domestic risks may have influenced the decision. South Korea’s growing exposure to U.S. tariff hikes and recent political turmoil have fueled market uncertainty. JPMorgan Chase this week cut its 2025 growth forecast for South Korea from 0.9 percent to 0.7 percent — the second downward revision in just one week. The ministry pushed back against speculation of political interference. “The probability that political uncertainty influenced the inclusion delay is zero percent,” Kim said. “If market concerns were the issue, FTSE would have delayed the completion date — not just the start date.” 2025-04-09 10:11:00

Korean won tumbles to five-year low amid US tariff concerns SEOUL, April 09 (AJP) - The value of South Korean won fell sharply against the U.S. dollar on Wednesday, reaching its lowest level in more than five years, as markets reacted to heightened uncertainty surrounding U.S. tariff policy. As of 9:15 a.m. the won was trading at 1,486.3 per dollar, up 13.0 won from the previous session’s closing price. The intraday spike marks the currency’s highest level since March 16, 2019, when it reached 1,492.0 during the global financial crisis. The day began with the won opening at 1,484.0, already 10.8 won higher than the previous close, before climbing further. The volatility comes ahead of the official implementation of the U.S. tariff measures, set to take effect at 1:01 p.m. Korea time. The Trump administration’s move to raise tariffs has sparked renewed trade tensions across global markets and prompted a flight from risk-sensitive assets. On Tuesday, Acting President and Prime Minister Han Duck-soo spoke by phone with U.S. President Donald Trump to discuss the tariff issue, though no clear resolution emerged. 2025-04-09 10:02:04

Samsung's profit exceeds market expectations, signaling modest rebound Samsung Electronics headquarters in Seocho-gu, Seoul/ Yonhap SEOUL, April 8 (AJP) - Samsung Electronics reported stronger-than-expected preliminary earnings for the first quarter of this year, signaling a tentative recovery for the world’s largest memory chip and smartphone maker after a prolonged slump. Operating profit for the quarter came in at 6.6 trillion won, or approximately $4.48 billion, the company said in a regulatory filing on Tuesday. While essentially flat from a year earlier — down 0.15 percent — the figure beat market expectations by more than 33 percent. Revenue rose 9.84 percent year-on-year to 79 trillion won, the second-highest quarterly revenue in the company’s history. The results surprised analysts, who had forecast an operating profit of around 4.9 trillion won, amid persistent concerns about weak demand in key markets. But strong sales of the Galaxy S25 smartphone series and resilient shipments of DRAM memory chips helped lift earnings. The first-quarter performance marked a return to growth after two straight quarters of declining profits. In the previous quarter, Samsung posted 6.49 trillion won in operating income. Stronger-than-expected demand for memory chips, particularly in China, played a key role in the rebound. A government-backed “trade-in” subsidy program boosted handset sales in the country by 15 percent year-on-year, helping to reduce chip inventories. “Samsung is likely entering a phase where it will pass through earnings in the second quarter,” said Han Dong-hee, an analyst at SK Securities. “While the Galaxy S25 momentum will dissipate and display performance will inevitably weaken during the off-season, this can be offset by rebounding memory shipments and rising DDR5 contract prices.” Analysts, however, warn that high-value semiconductor products such as high-bandwidth memory (HBM) are unlikely to contribute meaningfully to near-term revenue. Additionally, the fading impact of the S25 launch, along with possible disruptions from the U.S. tariffs, may dampen second-quarter performance. Although memory prices are showing early signs of recovery, analysts expect the gains to be moderate. “Even if mainstream memory product prices rebound, both the magnitude and duration of increases are likely to be more modest than market expectations,” one industry observer said. 2025-04-08 14:21:51

Apparel firms scramble as US tariffs hit Southeast Asian manufacturing hubs Hansae's plant in Vietnam/ Courtesy of Hansae SEOUL, April 8 (AJP) - South Korean apparel and footwear manufacturers are racing to blunt the fallout from a wave of steep tariffs announced last week by U.S. President Donald Trump, a move that threatens the global supply chains of some of Korea’s largest original equipment manufacturers. The new tariffs — imposed on key Southeast Asian economies that have become central to Korean manufacturing — include levies of 46 percent on Vietnam, 37 percent on Bangladesh and 32 percent on Indonesia. The countries are home to sprawling production operations for major Korean firms such as Youngone Trading, Hansae, and Hwaseung Enterprise. According to data from Daishin Securities, roughly 70 percent of Youngone Trading’s production is located in Bangladesh. Hansae operates half of its manufacturing out of Vietnam, while Hwaseung relies on Vietnam and Indonesia for a combined 90 percent of its output. Although tariffs are typically absorbed by the brand-name companies — such as Nike, Adidas and Gap — that contract Korean OEMs, industry sources say these global brands are beginning to share the costs with their suppliers, leaving Korean manufacturers exposed to financial strain. In response, Korean firms are urgently working to diversify both their production bases and export markets. Hansae, which depends on the U.S. for 90 percent of its revenue, is expanding operations in Central America, including Nicaragua and Guatemala, where tariff rates remain comparatively low at around 10 percent. Meanwhile, Youngone Trading and Hwaseung Enterprise are stepping up efforts to grow their presence in Europe, Japan and other Asian markets, where existing customer relationships could offer some insulation from U.S. trade policy shifts. “While companies are striving to overcome tariff shocks through production base diversification, this isn’t something individual firms can resolve alone,” said Park Young-soo, director of the Korea Fashion Industry Association. “Tax benefits and financial support measures for these companies are urgently needed.” 2025-04-08 13:47:31

S. Korea, Malaysia meet in Seoul for new round of FTA negotiations Getty Images Bank SEOUL, April 8 (AJP) - South Korea and Malaysia will convene this week in Seoul for a fresh round of negotiations aimed at finalizing a bilateral free trade agreement. Roughly 70 officials from both nations are expected to participate in the eighth formal round of talks, which will run from Tuesday through Friday. The South Korean delegation will be led by Kwon Hye-jin, the country’s chief trade negotiator, while Sumathi Balakrishnan, senior director at Malaysia’s Ministry of Investment, Trade and Industry, will head the Malaysian side. They will seek to bridge remaining gaps across 10 priority areas, including trade in goods, services, and broader economic cooperation. The push for a bilateral deal comes as both nations seek to insulate themselves from growing volatility in global trade. The ripple effects of the Trump administration’s tariff policies have led South Korea and Malaysia to pursue greater diversification of their export markets, South Korean officials said. South Korea and Malaysia currently face steep levies of 25 percent and 24 percent, respectively, on certain exports. For South Korea, the importance of Southeast Asian markets is becoming increasingly evident. Exports to the Association of Southeast Asian Nations (ASEAN) nations outpaced those to China for two consecutive months this year. In February and March, South Korea exported $9.58 billion and $10.32 billion in goods to ASEAN, compared to $9.51 billion and $10.09 billion in exports to China during the same period. “We will engage proactively in negotiations aimed at swiftly concluding a bilateral FTA with Malaysia to improve market access conditions for our businesses and help alleviate uncertainty,” said Kwon in a statement. 2025-04-08 09:52:25

Financial markets plunge as Trump tariff war rattles investors A Hana Bank branch in Seoul/ Yonhap SEOUL, April 7 (AJP) - South Korean financial markets plunged on Monday, with the benchmark KOSPI index suffering its steepest decline in years, as rising fears of new U.S. tariffs spurred a wave of foreign investor selloffs and heightened concerns over the country’s export-reliant economy. The KOSPI tumbled 5.57 percent to close at 2,328.20 — its lowest level since November 2022 — while the tech-heavy KOSDAQ dropped 5.25 percent to 651.30. Foreign investors led the rout, offloading roughly 3.3 trillion won in shares across both spot and futures markets, marking their largest single-day withdrawal since August 2021, according to data from the Korea Exchange. “Global uncertainty around a tariff war has triggered continued panic selling by foreign investors, who are rushing to secure dollar cash positions,” said Kim Seok-hwan, an analyst at Mirae Asset Securities. Investor anxiety surged, reflected in a 65 percent spike in the KOSPI 200 Volatility Index, or VKOSPI, which climbed to 44.23 — its highest reading since August of last year. Shares of Samsung Electronics dropped 5.17 percent, SK Hynix plunged 9.55 percent, and Hyundai Motor declined 6.62 percent. The South Korean won weakened significantly, falling 33.7 won to 1,467.8 per dollar in its sharpest one-day drop in nearly five years. “Despite market panic and investor concerns, Trump and White House officials are maintaining a hard-line stance on imposing tariffs,” said Lee Kyung-min, an analyst at Daishin Securities. “Federal Reserve Chair Jerome Powell’s statement that he would wait for more clarity before adjusting monetary policy also weakened market expectations for a rate cut.” 2025-04-07 17:00:30