Former US Trade Negotiator in Asia Says South Korea Wavering on 15% Tariff Deal
Wendy Cutler, a former career negotiator with the Office of the U.S. Trade Representative and chief negotiator for the U.S.-Korea free trade agreement, said that South Korea may not want to lower its 25% reciprocal tariff to 15% if the price is $350 billion for U.S. investments. Cutler was speaking on a podcast hosted by the Washington International Trade Association on Sept. 26.
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She said she is hearing that Korean negotiators are telling the U.S. they cannot give that kind of cash, it represents 20% of the country's annual GDP.
"You're seeing, increasingly, reports out of Korea that they may be better off with the 25% tariff than reaching a deal with the U.S., having to spend $350 billion. It costs a lot less money for them just to support their domestic suppliers [that] are being hurt by these tariffs."