South Korea could be caught in crossfire of China-US trade war: South Korea could potentially see a 7% drop in exports to China, the world’s second-largest economy if Donald Trump takes office and implements a promised 60% tariff on Chinese goods, Bloomberg reported, citing a central bank study.

Why is South Korea in the middle? South Korea is a major supplier of intermediate goods to China, and the negative impact of the tariffs could be twice as big as the one South Korea suffered from the US-China trade war of 2018. US export restrictions on semiconductors to China have also affected South Korea’s trade with China.

ICYMI- A second US presidential term for Donald Trump could usher in a 10% tariff on all imports into the US and a 50% tariff on goods from top trading partner China. US commodity exports will likely be the easiest target. As a major buyer of US commodities, China would likely effectively ban all commodity imports from the US — either formally or informally — if Trump imposes the 50% tariff. If the European Union, Japan, and South Korea impose 10% tariffs on US crude, US companies would be forced to either offer discounts or lower their output to keep their prices competitive.

An Indian port strike on the horizon? Union representatives from India’s state-run ports are set to meet with government officials on Tuesday in an eleventh-hour attempt to avoid strikes that are planned for Wednesday, Bloomberg reports. The worker groups will sit with the India Ports Association, a government agency, in New Delhi to discuss their demands, the outlet said, citing comments by Narendra Rao, a member of the working committee for the Centre of Indian Trade Unions. If the union leaders deem the proposals from the ports association unacceptable, they will initiate industrial action the following day.

What’s the potential impact? The strikes are expected to affect ports in Mumbai, Kolkata, and Tuticorin in the south of India, as well as container traffic and oil and gas tankers.

Negotiations go way back: The unions have been in negotiations with the government since 2021 to increase the worker’s pay, but no agreement has been reached.

OTHER STORIES WORTH KNOWING THIS MORNING-

  • Finland’s Wartsila to convert supply vessel into world’s first ammonia-powered PSV ship: Finnish marine and energy technology company Wartsila has signed a contract with Norwegian shipowner Eidesvik to make its offshore platform supply vessel run on ammonia fuel. The Viking Energy is set to be the world’s first platform supply vessel (PSV) to run on the green fuel with operations set for 1H 2026. Norwegian energy firm Equinor is chartering the vessel and financing the conversion, which will begin in early 2026.
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