South Korea Prepares for U.S. Tariff Response: Trade Chief
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Synopsis
South Korea is intensifying its preparations for the imposition of U.S. reciprocal tariffs, as announced by the country's top trade official. The government is committed to supporting businesses navigating new markets in light of the impending tariffs, emphasizing the need for ongoing negotiations to protect local interests.
Key Takeaways
- South Korea is preparing for U.S. reciprocal tariffs.
- Trade Minister Cheong In-kyo emphasizes support for exporters.
- Negotiations with the U.S. are ongoing to protect local interests.
- New tariffs could impact the South Korean economy significantly.
- Acting President Han Duck-soo promises tailored business assistance.
Seoul, March 31 (NationPress) South Korea is undertaking comprehensive measures to adequately prepare for the U.S. administration's forthcoming implementation of reciprocal tariffs, stated the nation’s leading trade official on Monday, emphasizing robust support for enterprises venturing into new markets.
Trade Minister Cheong In-kyo made these comments during a gathering with exporters in Seoul, as the administration of U.S. President Donald Trump is poised to reveal reciprocal tariffs intended to counteract the tariffs imposed by other countries on U.S. exports this Wednesday (U.S. time).
"We are executing meticulous preparations to address the U.S. announcement regarding reciprocal tariffs, anticipated on April 2. We have engaged in ongoing negotiations with the U.S. to optimally safeguard our firms' interests," Cheong was reported as saying by the Ministry of Trade, Industry and Energy, according to Yonhap news agency.
"Additionally, we will bolster support for exporters seeking alternative markets to prepare for the escalating protectionism among major economies," he noted, as per the ministry’s statements.
The new tariff framework is projected to affect South Korean businesses and the overall economy, given that exports are vital to the nation's growth.
Exporters have urged the government to assume an active role in mitigating the repercussions of the U.S. tariff policy, as reported by the ministry.
In the meantime, acting President Han Duck-soo pledged last week to deliver customized assistance to businesses to shield them from a worldwide "trade war."
Han made this assertion during a discussion with the heads of six prominent business organizations, including the Korea Chamber of Commerce and Industries and the Federation of Korean Industries, highlighting President Trump’s declaration of 25 percent tariffs on all imported vehicles.
"Our economy is facing challenges as there is increasing uncertainty regarding the trade landscape and technological rivalry from competing nations, while internally, the domestic political climate is unstable and sluggish domestic demand persists," he stated during the meeting at his official residence.
