Define a English Text Condition & Shape. How does it seems.

When I write a new text as much as longer, how it can be showing on this theme. As you know well, I am not a English Mother tung therefore I can’t write article like a English native speaker. I am going to copy a blog or article from the other website and then will paste it. Surely I am going to show the root of text to everyone who is reading my text here.

It’s Monday, time for Kind Economy. Today (the 20th), we have reporter Ji-Yeon Han here with us. Welcome. With President Trump about to take office, the global economy is paying close attention to his policy moves. The most concerning aspect must be tariffs, right?

The whole world is watching closely to see what executive orders he might issue on his first day in office.

According to AP News, nearly 100 executive orders may go into effect on the first day, potentially causing “shock and awe.”

During his campaign, Trump repeatedly stated that he would impose a universal tariff of 10–20% on all imports and up to 60% on Chinese goods.

On November 25 last year, he explicitly announced on social media that he would impose an additional 10% tariff on Chinese imports on his inauguration day and apply tariffs of 25% each on goods from Mexico and Canada.

Additionally, on January 14, he mentioned on social media that he would establish a new government agency, the Foreign Imports Office, to manage tariff collections starting on day one of his presidency.

Regarding universal tariffs, the nominee for U.S. Treasury Secretary recently reaffirmed that universal tariffs would indeed be implemented. Trump also outlined how tariffs would be used as a negotiation tool in areas such as drugs, the dominance of the U.S. dollar, and national defense.

This indicates that Trump plans to use tariffs not only for economic and trade issues but also as a major weapon to address other challenges.

Symbolic measures related to this could be announced on his first day in office.

But if universal tariffs are imposed, there will be significant concerns globally. For our economy, this would undoubtedly be a major blow, wouldn’t it?

If the U.S. raises tariffs, other countries will not remain passive. They are likely to retaliate.

The World Bank analyzed the potential impact and predicted that global economic growth could drop by 0.3 percentage points in such a scenario.

For export-dependent countries like ours, the repercussions would be direct and indirect, making this a major negative factor.

Exports to the U.S. account for 18.7% of our total exports. Industries like automobiles and semiconductors are expected to be particularly hard hit.

The government has forecasted a 1.5% growth in exports this year. Meanwhile, other organizations have different projections: the Korea Development Institute (1.8%), the Korea International Trade Association (1.8%), the Bank of Korea (1.3%), the Korea Institute for Industrial Economics and Trade (2.2%, the highest), and the Korea Financial Research Institute (0.4%, the lowest).

If high tariffs are imposed on Chinese goods, Chinese manufactured products could flood into third countries, including Korea, creating further challenges for our manufacturing sector.

In fact, the Korea Institute for International Economic Policy estimates that if a universal tariff of 20% and an additional 60% tariff on Chinese goods are implemented, Korea’s export revenue could decrease by up to $44.8 billion, or about 65 trillion won.

We’re also concerned about the impact on our exchange rate and inflation. What do you think will happen?

That’s right. Exchange rate issues are already a pressing concern.

Since Trump’s election on November 6, exchange rates have been on the rise. After an initial surge, they have skyrocketed, now hovering around the high 1,400 won range.

Despite our struggling economy, the Bank of Korea froze the benchmark interest rate at 3% on the 16th to defend the exchange rate.

If we were to lower our benchmark interest rate further, the gap with U.S. rates would widen, leading to greater capital outflows to the U.S. A strong dollar and high exchange rates would increase import prices, putting upward pressure on consumer prices.

If the exchange rate remains around 1,470 won, this year’s consumer price inflation rate is expected to rise from the originally predicted 1.9% to 2.05%, an increase of 0.15 percentage points.

If international oil prices also rise, the impact could be even more significant.

Although the interest rate was frozen, the economic situation remains challenging. The Bank of Korea’s Monetary Policy Committee noted in its statement that “the growth of exports is expected to slow, and domestic demand recovery will be slower than anticipated due to weakened consumer sentiment,” suggesting that this year’s growth rate may fall below last year’s forecast.

With the implementation of tariff policies in this context, inflation could surge. This raises the possibility of stagflation—rising prices during an economic downturn.

Reporter Ji-Yeon Han, jyh@sbs.co.kr.