South Korea and Japan are involved in a bitter trade war that could have effects on the global economy

Japan proclaimed it would tighten control over three chemicals — fluorinated polyamides, photoresists, and hydrogen fluoride that are the main elements to produce semiconductors a key material installed in most electronic devices manufactured in Korea. Under new protocols, Japanese companies would need a license for each chemical to export them to South Korea.

Japan claimed such restrictions as it alleged South Korea was leaking sensitive information to North Korea but did not provide any details. After South Korea strongly denied the accusations, Japan slapped down another trade restriction. It removes South Korea from its #white list as trusted trade partners.

South Koreans are furious at Japan. And so they are showing their annoyance by boycotting Japanese beer and clothing brands, as well as travel to the country.

The South Korean government is also looking into removing Japan’s preferred trade partner status and possibly creating a new low-tier category just to isolate the country from future benefits.

The trade dispute is a losing battle for everyone involved. South Korea is one of the most active trade partners of Japan, and the insecurity in their relationship will cause both economic and national security problems