AJU PRESS - ASIA NEWS HUB

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Chang Seong-won sotg813@ajunews.com

USTR to Hold Section 301 Hearings on Overcapacity With South Korea, 15 Others The Donald Trump administration, seeking new tariffs to replace reciprocal tariffs that were struck down, has launched a Section 301 investigation and will hold public hearings with major trading partners including South Korea. The Office of the U.S. Trade Representative said in a statement on May 4 (local time) that it will hold hearings May 5-8 at the U.S. International Trade Commission in Washington on economic policies and trade practices related to overcapacity involving 16 countries, including South Korea and China. On May 5, Lee Seung-heon, director of the Americas Trade Division at South Korea’s Ministry of Trade, Industry and Energy, is expected to appear on a panel to explain Seoul’s position. In an official written submission to USTR on April 16 tied to the Section 301 probe, the South Korean government said it is pursuing voluntary, preemptive restructuring efforts in sectors facing global overcapacity, including petrochemicals and steel. On forced labor, it said it is working to eradicate the practice based on International Labour Organization conventions. The hearings follow USTR’s launch in March of a Section 301 investigation into overcapacity-related practices covering 16 countries, including South Korea, China and Japan. Separately, USTR has opened a Section 301 investigation into forced labor involving about 60 countries, including South Korea and Japan. Section 301 authorizes the United States to take action against foreign policies and practices deemed unfair and affecting U.S. trade. After the U.S. Supreme Court in February invalidated reciprocal tariffs imposed under the International Emergency Economic Powers Act, the Trump administration imposed a new 10% global tariff under Section 122 and has been exploring additional tariffs under Section 301. USTR is expected to complete the Section 301 investigation by July 24 and then impose tariffs based on the findings.* This article has been translated by AI. 2026-05-05 14:50:25
U.S. to Start Reciprocal Tariff Refunds as Soon as May 12, Total Seen at $166 Billion U.S. tax refund procedures tied to the Supreme Court’s ruling invalidating reciprocal tariffs are expected to begin as soon as May 12 (local time), according to reports. Reuters reported on May 4 (local time), citing a statement from U.S. Customs and Border Protection, that the refund process had been set to start May 11 but was delayed by one day to May 12. Even after the process begins, it is expected to take 60 to 90 days for refunds to be deposited to importers. The move follows a Feb. 20 U.S. Supreme Court decision, by a 6-3 vote, striking down tariffs imposed by the Trump administration under the International Emergency Economic Powers Act, including reciprocal tariffs. The refund process is set to start about three months after the ruling. CBP is estimated to have collected about $166 billion (about 245 trillion won) in tariffs from 330,000 importers under IEEPA, and refunds are expected to be comparable. CBS, citing CBP data, reported that as of April 26 more than 11 million refund claims had been filed. The refunds will go to U.S. importers that brought goods in from overseas, not directly to American consumers. However, major U.S. logistics companies including FedEx and UPS said they plan to pass refunded amounts back to consumers. 2026-05-05 13:47:26
Iran Proposes 30-Day End to War in New Truce Offer; Trump Says Tehran Must Pay a Price As the United States and Iran continue behind-the-scenes contacts over a cease-fire, Iran has proposed a new truce plan to Washington that includes ending the war within 30 days, according to reports. President Donald Trump signaled dissatisfaction and suggested the U.S. could return to military action. AP and CNN reported on May 2, citing Iran’s semiofficial Tasnim News Agency and Iranian state TV, that Iran sent the United States a new cease-fire proposal through mediator Pakistan. The plan has 14 clauses. The proposal was described as Iran’s response to a nine-point U.S. cease-fire plan. Its central element is ending the war within 30 days, rather than a two-month cease-fire proposed by the United States, the reports said. The Iranian plan also includes security guarantees related to U.S. hostile acts, a U.S. troop withdrawal from areas around Iran, an end to a U.S. maritime blockade of Iran, the unfreezing of Iranian accounts and lifting of sanctions, an end to the Lebanon conflict, and a new mechanism for managing the Strait of Hormuz, according to the reports. Axios, citing two sources, reported that Iran’s proposal calls for a one-month negotiating period to discuss reopening the Strait of Hormuz, ending the U.S. maritime blockade and ending the Lebanon war, with nuclear talks to follow only after agreement is reached on those items. Kazem Gharibabadi, Iran’s deputy foreign minister, said the goal of the proposal is a “permanent halt” to the war. “The ball is now in the U.S. court to choose a diplomatic solution or continue confrontation,” he said. Trump: Iran must pay a price Trump responded skeptically. In a post on his social media platform Truth Social, he said the United States would soon review Iran’s proposal, but added that it was hard to imagine accepting it because Iran “has not yet paid enough of a price” for what it has done “to humanity and the world” over the past 47 years, a reference to Iran’s posture since the 1979 Islamic Revolution. Before boarding Air Force One at Palm Beach airport in Florida, Trump was asked whether he could resume attacks on Iran. “If they (Iran) act rude or do bad things,” he said, adding, “For now, we’ll watch. That could definitely happen.” He was reported to have received a new military plan on Iran from U.S. Central Command on April 30. Iran also warned of renewed fighting. Mohammad Jafar Asadi, deputy commander of the IRGC’s Khatam al-Anbiya Central Headquarters, told the semiofficial Fars News Agency that a U.S.-Iran clash could resume and said it was being proven that the United States does not keep “any promises or agreements.” The White House has said lobbyist Nick Stewart, who served as a State Department official during Trump’s first term, has joined the Iran negotiating team. CBS, citing officials, reported Stewart was recommended by Jared Kushner, Trump’s son-in-law and a member of the Iran negotiating team, and is known as a hard-liner who strongly supports military action against Iran. Separately, the State Department said on May 1 it fast-tracked approval of $8.6 billion (about 12.6533 trillion won) in arms sales to key regional partners including Israel, Qatar and the United Arab Emirates. The developments have kept tensions high, with both sides continuing to discuss a cease-fire while not ruling out a return to military confrontation. The United States has paused military operations since agreeing on April 8 to a two-week truce with Iran. In a letter to Congress on May 1 marking 60 days since notifying lawmakers about the Iran war, Trump said hostilities with Iran had “ended,” signaling that additional congressional approval would not be needed if the war was no longer continuing beyond the 60-day period. 2026-05-03 16:21:16
Trump administration fast-tracks $8.6B in arms sales to Middle East, reports say The Donald Trump administration is moving to fast-track a total of $8.6 billion (about 12.6533 trillion won) in arms sales to Middle Eastern countries, seeking both economic and diplomatic gains as regional demand for air defenses rises after the outbreak of the Iran war. CNN and the Financial Times reported May 2, citing U.S. State Department materials released the previous day, that Secretary of State Marco Rubio approved the sales by bypassing congressional review, citing an “emergency.” The accelerated sales are expected to include Patriot air defense missiles and advanced precision kill weapon systems, or APKWS, as well as the Integrated Battle Command System, or IBCS, for key regional partners including Israel, Qatar and the United Arab Emirates. Rubio said he had determined that an emergency exists requiring immediate sales to the countries and provided detailed justification. He said each sale “is in the national security interests of the United States” and therefore qualifies for a waiver of the congressional review requirement. The State Department said all of the proposed sales support U.S. foreign policy and national security, and would help strengthen the security of strategic regional partners that have been important to political stability and economic development in the Middle East. Since the Iran war began Feb. 28, Iran has carried out indiscriminate attacks on countries across the region, increasing the urgency for air defense and other countermeasures. At the same time, the United States has also drawn down its own missile stockpiles, and deliveries to Europe are expected to slip. The Pentagon has already notified some European countries — including the United Kingdom, Poland, Lithuania and Estonia — that deliveries of certain missiles could be significantly delayed, the FT reported. Separately, the United States and Iran have continued back-channel contacts on a ceasefire. Iran has proposed a new 14-point ceasefire plan that would end the war within 30 days, instead of the U.S. proposal to end it within two months. Trump said he would soon review “the proposal Iran just sent us,” but added that it was hard to imagine it being accepted because, he said, Iran has not yet paid a sufficient price for what it has done to humanity and the world over the past 47 years. 2026-05-03 14:36:16
Trump Says U.S. Could Resume Strikes on Iran if It Acts 'Rudely' President Donald Trump said the United States could resume military action against Iran if it behaves “rudely.” According to Axios and other foreign media, Trump made the remarks May 2 (local time) at Palm Beach airport in Florida before boarding his plane. Asked by reporters whether he could restart attacks on Iran, Trump said, “If they (Iran) act rudely or do something bad,” it could happen. “For now, we’ll watch,” he added, saying the possibility “certainly” exists. Trump was also reported to have received a briefing on April 30 from U.S. Central Command on a new military plan involving Iran. At the same time, with reports that Iran has proposed a new ceasefire plan to the United States, Trump appeared to be weighing both negotiations and military action. Earlier May 2, he wrote on his social media platform Truth Social that he would “soon” review “the proposal Iran just sent us.” He added that it was “hard to imagine” the plan would be accepted, saying Iran has not yet “paid enough” for what it has done “to humanity and the world” over the past 47 years. NPR and other outlets, citing Iran’s semiofficial Tasnim news agency and Iranian state television, reported that Iran delivered a 14-point ceasefire proposal to the U.S. side through Pakistan, a mediator. The report said the proposal was a response to a nine-point U.S. ceasefire plan. It calls for ending the war within 30 days, instead of a two-month ceasefire proposed by the United States. The reported terms also include guarantees related to U.S. hostile actions, the withdrawal of U.S. forces from areas around Iran, an end to a U.S. maritime blockade of Iran, the unfreezing of Iranian accounts and lifting of sanctions, an end to the conflict in Lebanon, and the creation of a new mechanism for managing the Strait of Hormuz. 2026-05-03 10:00:15
EU Finds Meta Failed to Protect Minors on Facebook and Instagram Under DSA, Risking Huge Fine The European Union has found that Meta’s protections for minors on Facebook and Instagram are inadequate, putting the company at risk of a massive fine. In a statement issued on April 29 (local time), the European Commission said its preliminary findings show that Meta’s Instagram and Facebook violated the EU’s Digital Services Act because they failed to properly identify, assess and mitigate risks of underage access by children younger than 13. The DSA requires online platforms to ensure safer social media use for minors, including stronger age verification and measures to limit access to commercial and harmful content. The EU said Meta did not take sufficient steps. While Facebook and Instagram set the minimum age at 13, children under 13 could bypass the rule by entering a false birth date when creating an account, and Meta lacked effective controls to prevent that, the commission said. The finding comes about two years after the EU opened its DSA probe into Meta in May 2024. The commission said the preliminary results do not prejudge the final outcome. Meta said it disagrees with the EU’s assessment and signaled it will respond. A Meta spokesperson said the company makes clear that Instagram and Facebook are for users 13 and older and has measures in place to detect and delete accounts created by younger users. Meta can submit its response before the EU issues a final decision. If the EU ultimately finds Meta in breach of the DSA, it could impose a fine of up to 6% of the company’s global revenue. With Meta reporting $201 billion in revenue last year, the fine could reach about $12.1 billion (about 17.8 trillion won). The EU previously fined X 120 million euros in December, citing DSA violations related to its advertising policies. Across Europe, governments have been moving to tighten rules aimed at protecting minors on social media. France has passed a measure to ban social media use by children and teenagers under 15, and Spain is pursuing legislation to set the minimum age for social media use at 16.* This article has been translated by AI. 2026-04-29 17:42:47
WSJ: Trump Tells Aides to Prepare to Extend Iran Maritime Blockade President Donald Trump has instructed aides to prepare to extend a maritime blockade on Iran, The Wall Street Journal reported April 28, citing sources. The report said Trump is leaning toward keeping economic pressure on Iran through the blockade as he seeks a decisive victory but lacks a clear exit strategy. According to the report, Trump favored maintaining economic pressure through the blockade and related measures in a series of recent meetings, including a Situation Room session on April 27. Sources said he also weighed options such as resuming airstrikes and quickly declaring an end to the war, but concluded those choices carried greater risk than the current blockade. Since a ceasefire with Iran on April 7, the United States has limited military action while intensifying economic pressure through the maritime blockade, restricting the movement of tankers and other vessels to and from Iran. Bloomberg News, citing commodities analytics firm Kpler, reported the day before that the blockade has caused crude inventories to build inside Iran, leaving only about 12 to 22 days of usable oil storage capacity. A senior U.S. official said the blockade is inflicting severe damage on Iran’s economy and that Iran’s leadership, under economic strain, has offered negotiations to the United States. Over the weekend, reports said Iran, through mediators, proposed a “three-stage peace plan”: first, a halt to U.S. military action; second, talks on reopening the Strait of Hormuz; and third, discussions on Iran’s nuclear program. But sources said Trump and his national security team concluded that accepting such a proposal would weaken U.S. leverage to secure nuclear concessions from Iran. They said the administration is not willing to abandon its position that Iran must halt uranium enrichment for 20 years. In that context, the Journal said Trump is satisfied with keeping the maritime blockade in place indefinitely. Trump wrote on social media platform Truth Social, “Iran just told us they are in a ‘state of collapse,’” adding, “They want us to open the Strait of Hormuz as soon as possible while they try to resolve their leadership situation.” The Journal said that if the U.S. blockade continues, Iran could seek to pressure Washington by resuming strikes on energy facilities in the Middle East or attacking U.S. warships enforcing the blockade. It added that a prolonged blockade could also prolong high oil prices, potentially creating political headwinds for Trump and Republicans ahead of this year’s midterm elections. The report also said Trump is receiving conflicting advice from close associates about the next steps in the Iran war. Sen. Lindsey Graham of South Carolina and others have urged maintaining pressure on Iran, while business figures have called for ending the war, warning that a prolonged conflict would deepen economic damage and could be politically costly in the coming midterm elections.* This article has been translated by AI. 2026-04-29 11:36:21
Google Signs AI Contract With Pentagon, Joining OpenAI and xAI The U.S. Department of Defense has signed a contract to use Google’s artificial intelligence models, The Information reported April 28, citing a source. Under the deal, the Pentagon would use Google’s AI for “any lawful government purpose,” including classified work such as operational planning and weapons targeting, the report said. The contract is said to include language stating both sides agree the AI system is not intended to be used — and must not be used — for large-scale domestic surveillance or autonomous lethal weapons, including selecting targets, without appropriate human oversight and control. However, it also says the agreement does not grant any right to control or deny the government’s lawful operational decision-making, according to the report. That wording has been interpreted to mean Google’s “Gemini” model could be used for surveillance of Americans or autonomous lethal weapons depending on circumstances, if needed. A Google spokesperson told Reuters, “Providing API access to our commercial models, including Google infrastructure, in line with industry-standard practices and terms, is what we believe is a responsible approach to supporting national security.” Reuters said Google is the third company to sign an AI deal with the Pentagon, following OpenAI and xAI, the AI startup founded by Tesla CEO Elon Musk. The Pentagon last year signed separate AI-use contracts worth up to $200 million each with major AI companies including Google, OpenAI and Anthropic. Afterward, Anthropic clashed with the Pentagon over a requirement that its AI model be used for “any lawful government purpose,” saying it did not agree to use for “large-scale domestic surveillance” or “autonomous lethal weapons development.” The Defense Department terminated its contract for Claude, and the Donald Trump administration issued an order banning Claude’s use within U.S. government agencies. More recently, President Trump said the Pentagon’s use of Claude could be possible, raising the prospect of a new contract, the report said.* This article has been translated by AI. 2026-04-28 17:33:43
WSJ: OpenAI Misses Key Targets, Raising Questions Ahead of Planned IPO OpenAI, which is pursuing an initial public offering this year, has missed major performance targets in 2025 and 2026, raising concerns ahead of the planned listing, The Wall Street Journal reported April 27, citing sources. According to the report, OpenAI failed to meet an internal goal of reaching 1 billion weekly active users for its AI model ChatGPT by the end of last year, a shortfall the Journal said has worried investors. Sources also said OpenAI missed its annual revenue target in 2025 as Google’s competing AI model Gemini grew rapidly. This year, OpenAI has also missed monthly revenue targets several times, the sources said, attributing the weakness to customers shifting in coding and enterprise AI to Anthropic, the developer of Claude. The missed targets have added pressure to OpenAI’s finances as it prepares for an IPO and signals large future spending. OpenAI completed $122 billion in funding last month, described as the largest in Silicon Valley history, and was valued at $852 billion. But it has said it expects to spend $600 billion through 2030 to secure computing resources such as data centers, and the performance gaps have intensified funding concerns. Sources said OpenAI Chief Financial Officer Sarah Friar recently told others that if revenue does not grow fast enough, the company may be unable to raise funds needed for future computing capacity. The board has also closely reviewed OpenAI’s data-center contracts and questioned CEO Sam Altman’s push to secure more computing resources despite a slowdown in the business, the sources said. The sources said the board is split between Altman’s goal of completing an IPO by the end of this year and other executives who want to prioritize cost controls. Friar has taken a cautious stance in recent months about pursuing an IPO by year’s end, the sources said. Altman and Friar, in a joint statement, denied reports of internal اختلاف, saying, “We are fully aligned on securing as much computing capacity as possible, and we work together every day to do so,” the Journal reported. OpenAI has also moved to cut costs, including ending its video AI model service, Sora. Separately, Reuters reported that OpenAI renegotiated contract terms with major shareholder Microsoft and can now offer its products on rival clouds including Amazon Web Services and Google Cloud, not only Microsoft. In addition, Kuo Ming-chi, an IT analyst at Taiwan’s TF International Securities known for Apple supply-chain analysis, said the day before that OpenAI is pursuing development of its own smartphone. The Journal said OpenAI is also facing other challenges ahead of the IPO, including a leadership gap after its No. 2 executive, product and business chief Fidji Simo, abruptly took health-related leave earlier this month, and litigation involving Tesla CEO Elon Musk, a co-founder of OpenAI. 2026-04-28 15:17:54
South Korea Stock Market Jumps to No. 8 Globally by Value, Passing U.K., on AI Chip Rally South Korea’s stock market has risen to the world’s eighth-largest by market capitalization, overtaking the United Kingdom as a surge in artificial intelligence and semiconductor shares pushed the benchmark KOSPI sharply higher, Bloomberg News reported on the 28th. Bloomberg data showed South Korea’s market capitalization has climbed 45% so far this year to about $4.04 trillion, edging past the U.K. at $3.99 trillion. As recently as the end of 2024, the U.K. market was about twice the size of South Korea’s, but South Korea’s value expanded rapidly over the past year or so to move ahead, Bloomberg said. The rally has been driven largely by the AI boom. Samsung Electronics and SK hynix, seen as major beneficiaries of the AI-led semiconductor “supercycle,” have been rising in earnest since last year and helped lift the broader market. The KOSPI, after first clearing 6,600 on the previous day, also broke above 6,700 on the 28th, extending its record run. Taiwan’s stock market, led by Taiwan Semiconductor Manufacturing Co., the world’s largest contract chipmaker, also surpassed the U.K. to rank seventh globally, Bloomberg said. Taiwan’s market capitalization was put at $4.48 trillion. The United States ranked No. 1 at $75.04 trillion, followed by mainland China at $14.84 trillion, Japan at $8.19 trillion, Hong Kong at $7.41 trillion, India at $4.97 trillion and Canada at $4.49 trillion, according to Bloomberg’s figures. Francesco Chan, an emerging markets and Asia-Pacific investment specialist at JPMorgan Asset Management in Hong Kong, said the rapid rise of South Korea and Taiwan reflects a structural reshaping of global equity markets rather than a tactical asset-allocation shift. “Structural capital inflows are continuing into these countries, which play a central role in the AI supply chain, backed by the advantages of the ‘supercycle’ in advanced foundry and memory,” he said. By contrast, the U.K. market has appeared more removed from the AI cycle, with its benchmark FTSE up just 4% so far this year. Analysts cited Europe’s heavier weighting toward traditional sectors such as financials, consumer staples and energy, compared with South Korea’s larger share of AI and semiconductor-related stocks. Patrick Kellenberger, an emerging-market equity strategist at Swiss asset manager Lombard Odier, said factors including AI, rising global defense spending and corporate governance reforms have provided strong momentum for South Korean and Taiwanese equities. “Europe is still struggling to commercialize innovation and scale it up,” he said, adding that creating conditions for innovative companies to emerge and grow is important but takes time. Bloomberg noted that despite strong chip-company earnings, South Korea and Taiwan still have gross domestic products of about $1.9 trillion and $1 trillion, respectively, below the scale of major European economies such as the U.K., Germany and France, each with GDP above $3 trillion. 2026-04-28 11:32:43