The report from Brown Brothers Harriman (BBH) indicates that the KRW is underperforming. The announcement of increased tariffs by US President Trump is a significant factor impacting the KRW. Despite this, reduced capital outflows are providing some support to the currency.
KRW faces tariff-related challenges
“The threat of higher tariffs is a drag on KRW and the broader economy, but reduced capital outflows cushion the currency.”
“US President Donald Trump announced yesterday that he intends to raise tariffs and ‘reciprocal tariffs’ on automobiles, timber, and pharmaceuticals imported from South Korea from 15% to 25% because ‘South Korea’s Legislature is not living up to its Deal with the United States.'”
“Overall, the threat of higher tariffs is a drag on KRW and the broader economy, but reduced capital outflows cushion the currency.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Source: https://www.fxstreet.com/news/krw-tariff-threats-weigh-on-performance-bbh-202601271554
