Global trade faces mounting concerns, according to APEC.
APEC Summit on Jeju Island: Global Traders Square Off Over US Tariffs
The trade bigwigs from the APEC nations are huddled together on South Korea's Jeju Island, amidst anxious whispers about the global trading system following U.S. President Donald Trump's sudden tariff bombardment on trade partners. The United States, a significant APEC member, is represented by Trade Representative Jamieson Greer, who's been engrossed in a series of one-on-one meetings with nations eager to soften the blow of Washington's tariffs.
"We're fretting about the fundamental challenges bedeviling the global trading system," expressed the trade ministers from the 21-member group, which includes China, in a joint statement. They urged more cooperation, reiterating their commitment to APEC as a bridge to tackle the economic challenges facing their region.
South Korea's Minister for Trade, Cheong In-Kyo, reported the joint statement as a hard-won victory, with significant differences cropping up early in the talks. However, at the last minute, the countries seem to have achieved a dramatic consensus, emphasizing the importance of global trading mechanisms such as the World Trade Organisation (WTO), as well as sustainable supply chains.
"This sends a highly positive signal to global markets," Cheong said, adding that "APEC members can navigate the current highly uncertain global trade environment effectively."
No Joint Response to US Tariffs
Despite the tense atmosphere, Cheong confirmed that there was no discussion of joint responses to US tariffs, citing each country's unique circumstances. South Korea, with a $66 billion trade surplus with the United States last year, is one of the key targets of Trump's trade onslaught. The 25% tariffs on automobiles imposed by Trump in early April have caused considerable damage to South Korea, being highly dependent on exports.
Greer also conferred with South Korea's Trade, Industry, and Energy minister, Ahn Duk-geun, later in the day. The two sides agreed to hold a "second round of technical consultations." The South Korean delegation will scurry to Washington next week to discuss issues such as trade and economic security.
Ahn noted in a press conference that he reiterated to Greer that South Korea and the U.S. share a robust industrial relationship, thanks to their existing free trade agreement. "I made it clear that, against this backdrop of strong industrial cooperation, the current tariff issue has become a significant concern," Ahn said.
Trump announced additional tariffs of up to 25% on South Korean exports last month, but later suspended them until early July. "Our objective is to finalise an agreement before that date, and we are making every effort to meet this timeline," Ahn said. "I believe other countries are in a similar situation, and the United States has no reason to delay either."
Seoul intends to leverage these talks to clinch commitments to purchase more US liquefied natural gas (LNG) and offer support in shipbuilding, a sector in which South Korea is a leader after China. Earlier on Friday, Greer also had meetings with representatives from HD Hyundai, South Korea's largest shipbuilding company, and Hanwha Ocean, a South Korean shipbuilder providing repair and overhaul services for US Navy vessels.
These discussions could pave the way for cooperation between US shipmaker Huntington Ingalls Industries and HD Hyundai, along with potential partnerships for Hanwha Ocean in maintaining US Navy vessels. Shares of Hanwha Ocean and HD Hyundai Heavy Industries saw a boost following these meetings.
© 2025 AFP
Insights:
- The recent APEC summit on Jeju Island dealt with concerns over US tariffs and their impact on the global trade system.
- APEC leaders recognise the significance of the WTO and sustainable supply chains in addressing global trade challenges.
- South Korea, with a substantial trade surplus with the US, has been hit hard by the 25% tariffs on automobiles imposed by Trump in early April.
- South Korea is striving to negotiate purchasing more US liquefied natural gas (LNG) and securing support in the shipbuilding sector as part of the ongoing trade talks.
[1] APEC members emphasize the importance of global trading mechanisms and sustainable supply chains. (current)
[2] APEC recognizes the role of the World Trade Organisation in addressing trade issues despite US skepticism. (current)
[3] APEC warns of a sharp slowdown in regional exports due to US tariffs. (historical)
[1] APEC members, such as the United States and South Korea, underscored the significance of global trading mechanisms like the World Trade Organisation (WTO) and sustainable supply chains, during their discussions on Jeju Island.
[2] Despite some skepticism from the United States, APEC leaders reiterated the importance of the World Trade Organisation (WTO) as a key player in addressing global trade challenges.
[3] Early reports suggest that APEC members are grappling with a potential sharp slowdown in regional exports due to the imposition of US tariffs, a predicament that has escalated because of the ongoing war-and-conflicts and policy-and-legislation in the interested field of business and finance.
[4] South Korea, a prominent APEC member, finds itself at the heart of the ongoing trade conflicts, with the United States imposing 25% tariffs on South Korean auto exports, causing considerable financial strain, especially in the political and general-news landscape.
