/

China-US trade war takes toll on South Korean economy

29 May 2019

China and the United States are South Korea’s two largest trading partners, and their ongoing trade war has big ramifications for Seoul. Ramifications that have only grown since Washington began pressuring allies to stop using products made by the Chinese telecom firm Huawei. South Korea’s economy was hit by its worst first quarter since the global financial crisis.

The country's real gross domestic product fell 0.3 percent in the first quarter from the previous quarter mainly due to weak export. South Korea's Foreign Ministry said it is in talks with the U.S. and it has discussed national security concerns over the use of Huawei's equipment, an issue further complicated by the close defense ties between Seoul and Washington. A trade war believed to be a factor in the Bank of Korea’s decision this month cut its growth forecast for the year ahead.