South Korean Finance Minister Choi Sang-mok stated that while the impact of reciprocal tariffs on the South Korean economy might not be significant due to the Korea-US Free Trade Agreement, the government would closely monitor the situation. He emphasized that the government would proactively respond to US President Donald Trump's tariff plan by identifying key areas of US interest and preparing explanations regarding South Korea's non-tariff barriers for the Trump administration.
Korean Finance Minister Choi Sang-mok speaks during a trilateral meeting with US Treasury Secretary Janet Yellen and Japanese Finance Minister Shunichi Suzuki on the sidelines of the IMF/G20 meetings, at the US Treasury in Washington, US, on Apr 17, 2024.
US President Donald Trump tasked his economics team on Thursday with devising plans for reciprocal tariffs on every country taxing US imports, with potential targets including South Korea, China, Japan and the European Union. "The impact of the reciprocal tariff measures may not be huge on our economy, as tariff rates are low due to the Korea-US Free Trade Agreement," said Choi Sang-mok, the finance minister who is serving as acting president. "However, given that the US said it would also assess non-tariff barriers including value-added taxes and taxes on digital services, it is necessary to monitor the situation." Among the top 15 US trading partners, South Korea's tariff rates are the second-highest after India, but nearly all were eliminated by the free trade pact first signed in 2007 and revised in 2018 during Trump's first term. Economists have said the pact could help mitigate the country's exposure to reciprocal tariffs threatened by Trump, with the benchmark KOSPI rising nearly 3 per cent this week to the highest level since early November. Choi said the government would respond to Trump's tariff plan by identifying key areas of US interest and preparing explanatory material regarding South Korea's non-tariff barriers for the Trump administration. South Korea's average tariff rate on imports from the US stood at 0.79 per cent as of 2024, and is expected to be lower this year, with no duties on manufactured goods, the finance ministry said in a separate statement.We know it's a hassle to switch browsers but we want your experience with CNA to be fast, secure and the best it can possibly be.
TRADE WAR TARIFFS SOUTH KOREA UNITED STATES ECONOMICS
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