Seoul: The government will "swiftly" devise support measures to prevent the potential fallout on local industries from the U.S. administration's plan to slap 26 percent reciprocal tariffs on South Korea, the industry minister said Thursday, expressing "regret" over Washington's latest move.
According to Yonhap News Agency, Industry Minister Ahn Duk-geun expressed regret that the U.S. tariff measures, which have a significant impact on the global trade environment, have become a reality. He addressed these concerns in an emergency meeting with officials from various Korean industries, economic organizations, and research institutes to discuss a response strategy to the new U.S. duties.
Ahn emphasized that the government will "swiftly" implement support measures for industries likely to suffer from the U.S. tariffs and will engage in "active" negotiations with Washington to minimize the impact on Korean businesses. He highlighted the potential negative impact the U.S. tariffs could have on South Korea's exports to the U.S. and the global trade market.
Earlier, U.S. President Donald Trump announced plans to impose a 10 percent "baseline" tariff on imports from all foreign countries, along with "reciprocal" tariffs, including a 25 percent duty for South Korea. Washington later revised the country-specific rate for Korea to 26 percent.
The baseline and reciprocal tariffs are set to take effect at 12:01 a.m. Saturday (U.S. time) and 12:01 a.m. next Wednesday, respectively. Certain goods such as steel, aluminum, automobiles, and key auto parts are not subject to reciprocal tariffs due to existing industry-specific tariffs, according to the White House.
The reciprocal tariffs for South Korea are lower than those for China, Vietnam, and Taiwan, which face 34 percent, 46 percent, and 32 percent duties, respectively. However, they are higher than the tariffs for Japan, the European Union, and Britain, which are set at 24 percent, 20 percent, and 10 percent, respectively.