The Impact of US-China Trade War on South Korea's Economy

Abstract

This study analyzes the impact of US-China trade war on South Korea's economy. The U.S.-China trade war began in 2018 when the U.S. President signed an executive order that imposed high-rate tariffs on Chinese products. The trade war between the two countries later expanded to technical issues due to the U.S. sanctions on Huawei and China's suggestion of restricting exports of rare earths, and spread to the regime when the U.S. Department of Defense stated Taiwan as a country, breaking the "One China" principle. South Korea has been affected tremendously with the degree of US-China trade war. Thus, this research investigates how South Korea is affected economically in detail. This study takes in count of several events in Korea after the US-China trade war. The analysis of this study clearly shows following the trade war, South Korea's economic status shows negative outcomes; in other words, US-China trade war results in pessimistic consequences.