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Korea seeks to resolve any 'misunderstanding' with U.S. about tariff rates

Published: 10 Mar. 2025, 17:26

Acting President Choi Sang-mok, right, speaks during a meeting for economic affairs on March 10 at the government complex in central Seoul. [JOINT PRESS CORPS]

Korea's acting president on Monday ordered authorities to actively communicate with the U.S. administration to resolve any misunderstanding over tariffs after U.S. President Donald Trump recently singled out Korea for applying high tariffs.

Trump, who has told his economic team to prepare reciprocal tariff plans by early April, said during an address to the U.S. Congress last week that Korea's average tariff was four times higher than that of the United States, despite military and other assistance Washington has provided to its Asian ally.

Acting President Choi Sang-mok, who doubles as the minister of economy and finance, ordered authorities "to actively explain to the U.S. about any misunderstanding of our tariff rates on U.S. imports," his ministry said in a statement.

Korea imposes the second-highest tariff rate among the top 15 U.S. trade partners after India, but for U.S. imports, nearly all tariffs are eliminated under their FTA first signed in 2007 and revised in 2018 during Trump's first term.

As of 2024, Korea's effective tariff rate on U.S. imports stood at 0.79 percent, according to Seoul's Ministry of Trade, Industry and Energy.

Choi said the government would also review nontariff measures, which Trump said would be considered in his reciprocal tariff plan.

The acting president asked Korean officials to prepare for consultations with the United States on cooperation in the shipbuilding and energy sectors.

During his speech, Trump also said that Japan, Korea and other countries wanted to partner on a natural gas pipeline in Alaska.

Seoul's Industry Ministry has said the country would "actively engage" in discussions with the United States on the project, but added that no details had been decided.

Reuters