- Senior officials analyzed tariff agreement between Japan and US at their meeting Friday.
- Industry Minister proposed mutually beneficial plan to US Commerce Secretary and the US showed interest.
- We have not heard about extension of August 1 deadline for talks.
South Korea is pushing for a deal that matches the one the US striked with Japan. I think it’s pretty obvious now for the market that we will get deals in the 10-20% tariff range and although it might be good news in the short term and lift risk assets, most of this is priced in already.
If negotiations fail, South Korea would get 25% tariffs on August 1 although I expect the deadline to be extended if they are indeed finalising the process.
This article was written by Giuseppe Dellamotta at investinglive.com.
