South Korea said on Friday it has notified the World Trade Organisation (WTO) that it seeks to suspend tariff concessions on imported United States goods worth 480 million dollars , in response to U.S. measures against South Korean imports.
U.S. President Donald Trump slapped a steep tariff on imported washing machines and solar panels in February to protect American manufacturers, prompting a fierce backlash from South Korea and China.
South Korea’s trade ministry said in a statement that it has informed the WTO Council-for-Trade-in-Goods that its plan to suspend tariff-concessions on imported-U.S.-goods, which are equal in value, to the South Korean washing-machines and solar-panels affected by U.S. tariffs.
The trade ministry said it plans to produce details on which U.S. products will be subject to the suspension closer to when it takes effect.
Under the WTO framework, a country’s right of suspension on concessions of a trading partner cannot be exercised for up to three years from when the trading partner’s safeguards take effect.
U.S. President Trump has stepped up trade protectionist actions by raising tariffs to guard U.S. manufacturing.
Amid escalating fears of a trade war, Trump said on Thursday he had ordered an additional 100 billion dollars new tariffs on China.
He has also taken issue with U.S. trade imbalances with South Korea.
In March, the two countries agreed to revise an existing bilateral-trade-agreement in principle, with Seoul giving more market access to U.S. autos, while Korean steelmakers avoided hefty steel tariffs.