Japan and South Korea heading towards a trade spat


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Japan and South Korea heading towards a trade spat

A trade collision appears to be dangling on the cards between South Korea and Japan, as on Thursday, the 4th of July 2019, Finance Minister of South Korea, Hong Nam Ki, threatened a tit-for-tat tariff hike after Japanese government had imposed restrictions on Supplies to South Korea based companies.

Adding that a swinging conflict hanging fire would unlikely to spare any of them, South Korean finance minister, Nam Ki, said on Thursday in a radio interview, (July 4th), “The imposition of such measures cannot be excluded.

If the conflict swings, it will hurt both economies,” while South Korean trade minister, Yoo Myung Hee had been quoted saying that the retaliatory measures would unleash a major threat to global economy, as numerous supply chains would be disrupted as an aftermath of Japan’s ban on Supplies to South Korean tech companies.

Latest ban on South Korean technology companies came into light over the narratives of a spurring conflict of interests between the third- and eleventh- largest economies of the world, as at the beginning of the week, Japan’s government had announced that it had been exploring an option of controlling exports of some high-tech materials to South Korea.

Nonetheless, earlier on Thursday (July 4th), South Korea’s commerce minister, Yoo had urged Japan to call off the sanctions and to start off a conversation.