Uncertainties grow amid US-China trade talks: Bank of Korea chief

Bank of Korea governor Lee Ju-yeol also urged executive members to closely examine the consequences of the ongoing trade talks upon the domestic market.
Bank of Korea governor Lee Ju-yeol also urged executive members to closely examine the consequences of the ongoing trade talks upon the domestic market.PHOTO: EPA-EFE

SEOUL (THE KOREA HERALD/ASIA NEWS NETWORK) - The chief of South Korea's central bank said on Friday (May 10) that uncertainties have grown concerning the prospects of trade talks between the United States and China, after US President Donald Trump warned of imposing extra tariffs on Chinese goods.

"It is true that uncertainties have grown further over the US-China trade talks," Bank of Korea governor Lee Ju-yeol said at a meeting on financial and economic status.

"But we need to calmly keep watch as there are considerable expectations that the two countries will continue efforts to strike a deal."

The monetary policymaker also urged BOK executive members to closely examine the consequences of the ongoing trade talks upon the domestic market.

In a statement, the central bank said the mounting trade conflict has negatively affected investor sentiment in global financial markets and expanded uncertainties in price variables.

On Wednesday, President Trump accused China of "breaking the deal" in bilateral trade talks.

Also, the Office of the United States Trade Representative filed paperwork to raise tariffs on US$200 billion (S$272.46 billion) on Chinese imports to 25 per cent from the previous 10 per cent.

Protesting against Washington's abrupt move, Beijing vowed retaliation.