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Imported pickup tax in play in Trump trade talks with South Korea

WASHINGTON/SEOUL - Talks starting Friday to amend a U.S.-South Korean trade deal must balance President Donald Trump's domestic agenda against the need to contain a nuclear armed North Korea and will have to be completed swiftly, officials from both sides told Reuters. The U.S goods trade deficit with South Korea has doubled since the 2012 signing of the US-Korea Free Trade Agreement (KORUS). Almost 90 percent of the 2016 shortfall of $27.6 billion came from the auto sector, an issue the United States is expected to press hard in the Washington talks. A quick deal could give Trump his first trade victory at a time when NAFTA negotiations are dragging on without agreement and pressure on China to change trade practices has yielded little progress. The talks, led by Assistant U.S. Trade Representative Michael Beeman and Yoo Myung-hee, director general for FTA negotiations at South Korea's trade ministry, begin at a time of heightened tensions with Pyongyang. A trade ministry official in Seoul said South Korea was waiting for Washington's formal proposals and substantial negotiations would not take place on Friday over a deal Trump has repeatedly threatened to scrap. "The U.S. brought up lowering non-tariff barriers, especially for their auto industry. At the moment, we are not sure whether the U.S. will ask that but we will be prepared (for the U.S. demand)," said the official, who spoke on condition of anonymity as he was not authorized to talk to the press. A top priority for the Americans is maintaining a 25 percent tariff on Korean pickup truck imports, which was meant to have been phased out from 2019 under the current deal, according to a U.S. official and a South Korean car industry source. South Korea has two major automakers, Hyundai and Kia, both of which are heavily reliant on exports due to the small size of their domestic market. Critics charge that South Korea discriminates against imports with a range of non-tariff barriers. South Korean auto companies believe that Washington will also seek to increase the 25,000-vehicle per U.S. automaker threshold for U.S. car shipments to South Korea that can enter the country without meeting Seoul's domestic industry regulations. The official at a South Korea auto company, who was not authorized to speak to the media, also said the United States was interested in easing Seoul's vehicle emissions targets. These are viewed as discriminating against U.S. autos.

Next-gen 2021 Kia Sorento spied testing in the Alps

Kia just launched the new three-row Telluride into the world, but that doesn't mean its original seven-passenger model is going away. Far from it. The camouflaged vehicle you see here is the next-generation Sorento caught testing in the Alps while undergoing some strenuous trials. One of those happened to be towing a BMW X5, as seen in the photos. Due to the heavy amount of cladding and wrappings, it's difficult to pick out specific styling elements. However, we imagine the front fascia is going through a massive change up. It's tough to say what direction they're heading, but the openings do mimic what we see on the vehicle today. The current Sorento doesn't have an upright, tough appearance, and the prototype we see here doesn't appear to be a massive change in the status quo. Kia made the Telluride its big, butch crossover, so differentiation with that SUV is most likely necessary. Moving along the side, Kia appears to have changed up the mirror position, placing them below the window line on the doors instead of above in the A-pillar area. We can't see the door handles or body lines, but we'll assume Kia has something new and interesting cooked up under there. Finally, the most mysterious part of all is the rear end. Kia broke out the massive body armor for this one, making sure nobody can tell what's going on underneath. Perhaps the rear-end design is where we'll see the biggest changes for the Sorento. We don't imagine there will be anything extreme like a chopped and angled roof/rear window for styling purposes, though, especially if the Sorento intends to keep all three rows open for business. That said, the existence of the Telluride could prompt some changes to the vehicle's purpose in Kia's lineup. Even though Kia gave the Sorento a light refresh for 2019, this next-generation model is probably coming in the next couple years. Kia used a very light brush for that mid-cycle refresh, and this update will signal a totally new generation of the SUV. We'll expect to see new powertrains, possibly with electrification in the form of a hybrid or plug-in hybrid come into the fold. We didn't get a look inside, but given the current Sorento and luxurious new Telluride, we'd have high hopes for something quite nice.

U.S., South Korea strike a new trade deal

WASHINGTON — The United States and South Korea have reached agreement on a new trade pact, the White House said on Tuesday. "We have come to an agreement in principle, and we expect to roll out specific details on that very soon," White House spokeswoman Sarah Sanders told a briefing. Her comments were the Trump administration's first confirmation that the two sides had reached an agreement in trade talks covering revisions to the U.S. South Korean Trade Agreement (KORUS) and a South Korean exemption from new U.S. metals tariffs. Seoul on Monday announced a deal to limit exports to the U.S. of South Korean steel, while extending high U.S. tariffs on any possible South Korean pickup trucks and increasing U.S. automakers' access to the Korean market. But details of the agreement have not yet been released by the U.S. Trade Representative's office, which led the negotiations for the United States after President Donald Trump last year called the 6-year-old bilateral pact a "horrible deal" that had doubled the U.S. trade deficit with South Korea since 2012. The deal is expected to permanently exempt South Korea from Trump's tariffs of 25 percent on steel and 10 percent on aluminum, but South Korea will have to reduce its steel exports to the United States by 30 percent from its average over the past three years to about 2.68 million tons. South Korea was the third largest steel exporter to the United States last year after Canada and Brazil. The agreement also was expected to double South Korea's import quota for cars meeting U.S. safety standards — not necessarily Korean standards — to 50,000 per manufacturer per year from 25,000 previously. The big challenge now would be getting unimpressed Korean consumers to buy them. The 25 percent U.S. tariff for pickup trucks, which was due to begin a phase-out starting in 2019, would be extended for another 20 years, according to South Korean officials. This would virtually ensure that any pickup truck contemplated by Korean automakers Hyundai or Kia for the U.S. market would be built in the United States.Reporting by Ayesha Rascoe and David LawderRelated Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Image Credit: Reuters Government/Legal Hyundai Kia