ED A 90-day truce
The recent 90-day truce in the U.S.-China trade war offers the global economy a temporary breath of air. As part of the agreement, both countries pledged to reduce tariffs by 115 percent and acknowledged that substantial progress had been made in resolving their differences. More significantly, they agreed to establish a consultative body to continue negotiations, with key trade discussions expected to resume at the Asia-Pacific Economic Cooperation (APEC) ministerial meeting on Thursday and Friday. While markets responded positively and investor sentiment improved, this development represents a pause, not a resolution, in a geopolitical conflict that has become structural, not cyclical. For South Korea, which is economically entangled with both Washington and Beijing, the truce is an opportunity and also a warning. South Korea’s economy, reliant on global trade and deeply integrated with both the United States and China, stands to benefit in the short term. The reduction in tariffs could stabilize critical export sectors such as semiconductors, automobiles and electronics, which hav
May 14, 2025