Seoul: Acting President and Prime Minister Han Duck-soo, who has resumed his duties after an 87-day hiatus due to an impeachment vote, has pledged to vigorously confront the global trade challenges instigated by U.S.-initiated tariff disputes. As an experienced trade expert and former ambassador to the United States, Han emphasized his commitment to protecting South Korea's national interests amid an escalating trade war. U.S. President Donald Trump has announced that reciprocal tariffs will be implemented on April 2, a date he has dubbed "Liberation Day" for the American economy, a move that is expected to significantly impact South Korea.
According to Yonhap News Agency, since March 12, South Korea has been subjected to a 25 percent tariff on its steel exports as a result of Trump's tariff policies. The Wall Street Journal reported that the Trump administration is concentrating on imposing tariffs on approximately 15 percent of countries with persistent trade imbalances with the U.S., a group labeled as the "Dirty 15" by Treasury Secretary Scott Bessent. This list is anticipated to include countries such as China, the EU, Mexico, Vietnam, Taiwan, Japan, South Korea, and Canada, as identified in a recent U.S. Trade Representative's Federal Register notice.
With the tariff imposition date fast approaching, the South Korean government is bracing for potential negative outcomes while simultaneously preparing countermeasures to mitigate the impact from Washington. Han is expected to initiate direct communication with Trump, as previous attempts by Deputy Prime Minister and Finance Minister Choi Sang-mok during Han's impeachment trial were unsuccessful. In response to these challenges, both governmental and private sectors in Korea are taking proactive steps. Trade Minister Ahn Duk-geun recently met with Alaska Governor Mike Dunleavy, where the latter encouraged South Korean investment. Additionally, Hyundai Motor has announced a $21 billion investment in the U.S. over the next four years, and Korea's leverage in the shipbuilding industry remains significant for the U.S.
Trump has inaccurately asserted that Korea's tariffs are four times higher than those of the U.S., suggesting a possible renegotiation of the Korea-U.S. Free Trade Agreement. Furthermore, he has threatened to retract the CHIPS and Science Act, which offers subsidies to foreign semiconductor firms like Samsung Electronics and SK hynix for their U.S. investments. In a bid to exert further pressure, Trump has implied that trade issues could influence the military alliance between South Korea and the U.S., with the potential restructuring of U.S. troops stationed globally, including in Korea, being a point of concern.
The current situation necessitates not only adept diplomatic engagement but also the diversification of trading partners. In light of these developments, a trilateral meeting between the foreign ministers of Korea, Japan, and China took place in Tokyo, as all three nations are facing tariff pressures from the Trump administration. Foreign Minister Cho Tae-yul met with his Japanese and Chinese counterparts, underscoring the shared interest in maintaining peace and stability on the Korean Peninsula.
Economically, South Korea is China's second-largest trading partner, yet divergent interests persist among South Korea, Japan, and China concerning North Korea. Despite the recent meeting, territorial issues, such as China's unauthorized construction in the South Korea-China Provisional Measures Zone, and historical tensions with Japan continue to pose challenges. The evolving global landscape underscores the necessity for South Korea to pursue diversified and balanced diplomacy in Asia.