Top envoys of South Korea, Vietnam agree to mitigate tariff ripple effects

Home > National > Diplomacy

Top envoys of South Korea, Vietnam agree to mitigate tariff ripple effects

Published: 16 Apr. 2025, 15:55 Updated: 17 Apr. 2025, 15:52

Audio report: written by reporters, read by AI

South Korean Foreign Minister Cho Tae-yul, left, shakes hands with Vietnamese Deputy Prime Minister and Foreign Minister Bui Thanh Son in Hanoi on April 15. [YONHAP]

South Korean Foreign Minister Cho Tae-yul met with Vietnamese Deputy Prime Minister and Foreign Minister Bui Thanh Son on Tuesday and agreed to maintain close communication regarding the Donald Trump administration’s recent imposition of reciprocal tariffs.

As South Korea and Vietnam now face reciprocal tariffs of 25 percent and 46 percent, respectively, there is growing concern about the ripple effects on the two countries’ tightly linked trade and investment relationship.

During a bilateral meeting and dinner in Hanoi held Tuesday, Cho and Son “agreed to communicate closely on the recent U.S. reciprocal tariff measures, considering how closely the South Korean and Vietnamese economies are interconnected,” Seoul’s Ministry of Foreign Affairs announced Wednesday.

Earlier this month on April 2, Trump had warned of a 25 percent reciprocal tariff on South Korean products, while imposing a 46 percent tariff on Vietnamese goods on the grounds that Chinese products were being rerouted through Vietnam to enter the United States.

During Tuesday’s meeting, Cho also requested cooperation to address difficulties faced by around 10,000 South Korean companies operating in Vietnam, including issues concerning labor permits, residency and licensing.

“Vietnam values the activities and expansion of South Korean companies and is continuing efforts to address their difficulties,” Son said in response, according to the Foreign Ministry.

South Korean Foreign Minister Cho Tae-yul and Vietnamese Deputy Prime Minister and Foreign Minister Bui Thanh Son hold a bilateral meeting in Hanoi on April 15. [NEWS1]

“South Korea and Vietnam also agreed on the need to expand cooperation in strategic and future-oriented sectors such as nuclear power and high-speed rail,” the ministry added.

Both countries face a dilemma — they must urgently negotiate tariff reductions with the U.S. while maintaining close economic ties with China.

Hanoi, in particular, is caught in the crossfire between Washington and Beijing.

Chinese President Xi Jinping made a state visit to Vietnam on Monday and called for “joint opposition to the U.S.’s unilateral bullying.”

Reacting to Xi’s visit to Vietnam, Trump said the discussions between Beijing and Hanoi were intended to harm Washington.

Chinese President Xi Jinping, left, meets Vietnam's National Assembly Chairman Tran Thanh Man during a two-day state visit in Hanoi on April 14. [AP/YONHAP]

“I don’t blame China; I don’t blame Vietnam,” Trump said to reporters at the White House on Monday. “That’s a lovely meeting. Meeting like, trying to figure out: ‘How do we screw the United States of America?’”

Vietnam tried to maintain a balance by omitting any reference to its dispute with the United States in its official statement after the summit with China. The country had earlier offered to reduce its tariffs on U.S. imports to zero percent.

Amid rising strategic interest in Vietnam, Japan’s Kyodo News recently reported that Japanese Prime Minister Shigeru Ishiba may visit Vietnam between late this month and early next month.

Meanwhile, U.S. Senior Bureau Official for the State Department’s East Asian and Pacific Affairs Sean O’Neill began an Asia tour on Wednesday, aimed at countering China’s influence.

If the United States does go forward with reciprocal tariffs on Vietnam, South Korean companies are also expected to suffer direct consequences given the heavy investment in the country. About half of Samsung Electronics’ smartphones are manufactured in Vietnam, and LG Electronics also produces a significant portion of its home appliances for the North American market there.

As the heavy reliance on production bases in Vietnam rises along with concerns, Minister of Trade, Industry and Energy Ahn Duk-geun visited the country on Monday to discuss ways to minimize the damage.

South Korean Foreign Minister Cho Tae-yul signs a document as Vietnamese Deputy Prime Minister and Foreign Minister Bui Thanh Son looks over during a bilateral meeting in Hanoi on April 15. [NEWS1]

Cho also held a meeting on Tuesday with South Korean residents and businesspeople in Vietnam to hear their concerns related to the ongoing U.S.-Vietnam tariff negotiations. As economic cooperation between Seoul and Hanoi continues to deepen, there is speculation that a favorable outcome for Vietnam in U.S. tariff negotiations would also benefit South Korean companies.

Meanwhile, North Korea was also on the agenda during the foreign ministers’ meeting.

According to Seoul’s Foreign Ministry, Cho expressed concerns over “illegal military cooperation between Russia and North Korea” and emphasized that “North Korea must not be rewarded for such cooperation during peace negotiations over the war in Ukraine.”

Vietnam, a longstanding ally of North Korea, has declared this year, the 75th anniversary of diplomatic ties between the two countries, as the “Year of Friendship” and is working to strengthen bilateral relations.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.

BY PARK HYUN-JU [[email protected]]