Korea moves to secure economic stability as Trump tariffs loom
Published: 14 Feb. 2025, 16:32
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- SHIN HA-NEE
- [email protected]
![Acting President and Minister of Economy and Finance, Choi Sang-mok, speaks during a meeting on international economic affairs held at the government complex in central Seoul on Feb. 14. [MINISTRY OF ECONOMY AND FINANCE]](https://koreajoongangdaily.joins.com/data/photo/2025/02/14/5011e548-7384-44f4-8709-1745b07a681e.jpg)
Acting President and Minister of Economy and Finance, Choi Sang-mok, speaks during a meeting on international economic affairs held at the government complex in central Seoul on Feb. 14. [MINISTRY OF ECONOMY AND FINANCE]
As U.S. President Donald Trump announced plans to impose "reciprocal" tariffs on trading partners, Korea is moving quickly to secure its position ahead of the implementation, which could take effect as early as April.
Acting President Choi Sang-mok reassured the public on Friday that the impact of reciprocal tariffs may not significantly affect Korea's economy, but he emphasized the need for continued monitoring.
On Thursday, Trump signed a presidential memorandum outlining a comprehensive plan to impose country-specific tariffs on the United States' major trading partners, raising concerns in Korea, where the trade surplus with the United States reached $55.7 billion last year.
In a meeting with government ministers on economic matters, Choi said that the new U.S. policy's impact might be limited due to the low tariff rates Korea applies to U.S. exports under the bilateral FTA.
As of 2024, the average tariff rate on U.S. imports stands at 0.79 percent, with the rate further reduced through refunds, according to the Ministry of Economy and Finance. It is expected to decrease further this year in line with the annual tariff reduction plan.
The Finance Ministry pointed out that the tariff rate on manufactured goods imported from the United States is already set to zero percent.
However, Choi stressed the importance of closely monitoring the situation, as the United States is expected to assess not just tariffs but also nontariff barriers, such as value-added taxes and digital service taxes.
In response, Choi directed the relevant ministries to establish a task force to evaluate the country’s vulnerabilities and nontariff barriers, and prepare materials to present Korea's position to U.S. officials.
Deputy Minister for Trade Park Jong-won of the Ministry of Trade, Industry and Energy will travel to Washington D.C. on Feb. 17 to meet with officials from the U.S. Commerce Department and the U.S. Trade Representative’s office to discuss trade policies and Korea-U.S. economic cooperation.
BY SHIN HA-NEE, YONHAP [[email protected]]
with the Korea JoongAng Daily
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