Sung Tae-yoon, the presidential chief of staff for policy (Yonhap)
The presidential office on Wednesday expressed concerns about the potential impact of President-elect Donald Trump's proposed tariffs on Korean businesses in Mexico and Canada, vowing proactive measures to address the risks.
Sung Tae-yoon, the presidential chief of staff for policy, held an interagency meeting to assess the potential effects of Trump's pledge to levy a 25 percent tariff on all products from Mexico and Canada, along with an additional 10 percent tariff on China.
Trump's proposal has raised concerns among Korean companies with investments in Mexico and Canada that utilize the US-Mexico-Canada Free Trade Agreement to access the North American market.
"If the proposed 25 percent tariff on all products from Mexico and Canada becomes a reality, it would inevitably affect exports from Korean companies producing in these countries to the U.S.," the office said in a release.
"It would also impact Korean companies in the U.S. sourcing components from Mexico and Canada, as well as those exporting intermediate goods to these countries," it noted.
While the tariffs on China are expected to have a limited direct impact on Korean manufacturers in the semiconductor, steel and automotive sectors given their heavy focus on the Chinese market, officials also examined the broader effects of the escalating trade tensions between Washington and Beijing.
"A decline in China's exports to the U.S. could affect Korea's intermediate goods exports to China and may also intensify competition in third-country markets," the office said.
Sung instructed senior officials from the finance, trade and foreign affairs ministries to proactively prepare responses for each scenario to minimize the potential risks from the new policies under the Trump administration. (Yonhap)
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