Synopsis
On April 3, acting President Han Duck-soo of South Korea directed the government to take decisive action in response to the US's imposition of a 25% tariff on imports. This comes amid growing concerns of a global tariff war, prompting urgent discussions and support measures for affected sectors.Key Takeaways
- South Korea faces a 25% tariff from the U.S.
- Government instructed to minimize economic damage.
- Emergency support plans are being developed.
- Engagement with U.S. officials is crucial.
- Tariffs impact sectors like the auto industry.
Seoul, April 3 (NationPress) Acting President Han Duck-soo has directed the government to take an all-encompassing approach in response to the U.S. announcement of a 25 percent tariff on imports from South Korea.
During an emergency meeting of the economic and security strategy task force, which included Finance Minister Choi Sang-mok, Industry Minister Ahn Duk-geun, and other senior government officials, Han emphasized the severity of the current situation.
He stated, 'Given the grave nature of the impending global tariff war, the government must utilize all its resources to navigate this trade crisis,' shortly after U.S. President Donald Trump declared tariff rates for all U.S. trading partners, including a 25 percent tariff for South Korea, commencing next Wednesday.
Han instructed Ahn to thoroughly assess the details and potential impacts of these new tariffs in conjunction with the private sector and to engage proactively in discussions with the U.S. to lessen the adverse effects.
Additionally, he mandated the government to quickly develop emergency support strategies for the sectors and companies affected by the tariffs, which notably include the auto industry.
Later, Han directed Trade Minister Cheong In-kyo to expedite arrangements for a visit to the U.S. while overseeing another task force meeting focused on countering U.S. reciprocal tariffs.
'In this critical situation, the government will exert every effort to negotiate with the U.S. to limit business losses,' he remarked, highlighting that the tariffs could pose a significant challenge for South Korea’s export-driven economy.
Han also mentioned that the government would reveal emergency response plans by next week regarding tariffs that took effect on the auto industry earlier that same day.
Under the U.S. framework, reciprocal tariffs for South Korea have been set lower than those for China, Vietnam, and Taiwan, which will face duties of 34 percent, 46 percent, and 32 percent respectively, but higher than the 24 percent, 20 percent, and 10 percent tariffs imposed on Japan, the European Union, and Britain.
