Acting President Choi Sang-mok said Friday that the impact of US President Donald Trump's latest "reciprocal" tariffs may not significantly affect South Korea's economy, yet emphasized the need for continued monitoring.
On Thursday (US time), Trump signed a presidential memorandum outlining a comprehensive plan to impose country-specific tariffs on the United States' major trading partners, raising concerns here as South Korea's trade surplus with the US reached US$55.7 billion last year.
During a meeting with government ministers on economic issues, Choi noted that the impact of the latest US policy might be limited, due to the low tariff rates South Korea applies to US exports under the countries' bilateral free trade agreement (FTA).
Under the FTA, the average tariff rate on imports from the US stood at 0.79 percent as of 2024, with the rate lowered when considering refunds, the finance ministry said. The rate is expected to decrease further this year in accordance with the annual tariff reduction plan.
The ministry said the tariff rate on manufactured goods imported from the US is already at zero percent.
However, the acting president stressed the importance of close monitoring, as the US is expected to assess not only tariffs but also non-tariff barriers, such as value-added taxes and digital service taxes.
In response, Choi instructed the relevant ministries to establish a task force to thoroughly assess the country's vulnerabilities and non-tariff barriers, and prepare materials to explain the country's position to US officials. (Yonhap)
