How is a U.S.-China trade war expected to affect global trade?<br />What about the impact on the South Korean economy?<br /><br /> The initial round of tariffs will likely do little damage to the U.S., China or the global economy. <br /> But if they escalate, the pain will deepen and spread as they disrupt supply chains, hurt business confidence and raise uncertainty.<br />Experts warn all this uncertainty is bad news for South Korea. Take a listen.<br /><br />"South Korea trades 37 percent of its exports with China and the U.S.. In particular, it sells a lot of intermediary goods to China that are made into final goods and exported to the U.S. Growing trade tensions, tit-for-tat measures between Washington and Beijing could slowdown South Korea's real economy."<br /><br /> Already, we've seen stock markets on a rollercoaster ride,...Beijing has started banning U.S. company Micron's chip sales in China..this could broaden into other sectors. <br />China could stop issuing licenses for U.S. companies operations or sales in the country, hurting global supply chains.<br /> Fitch Ratings estimates a full-blown trade war between the G2 could cost the world economy two trillion U.S. dollars.<br />So just as the IMF has warned, this extended trade spat could undermine the strongest global expansion since 2011. <br /><br /> Definitely a bottom risk for the global economy. Thanks for the report, Hyesung.<br /><br /> My pleasure, Ji-yoon. <br />
