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 during an emergency meeting with officials from various Korean industries, economic organizations, and research institutes. The meeting was convened to discuss a response strategy to the new U.S. duties. Ahn stated that the government intends to devise support measures promptly for industries likely to suffer damage from U.S. tariffs and will push for ministerial-level talks with Washington to engage in "active" negotiations on the matter.
Ahn emphasized the government's concern over the possible negative impact the U.S. tariffs could have on South Korea's exports to the U.S. as well as 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, which include 25 percent duties for South Korea. Washington later revised the country-specific rate for Korea to 26 percent.
Seoul's industry ministry explained that the reciprocal tariff rate incorporates the baseline 10 percent duties. These tariffs will go into effect at 12:01 a.m. Saturday (U.S. time) and 12:01 a.m. next Wednesday, respectively. Some goods, such as steel, aluminum, automobiles, and key auto parts, are exempt from reciprocal tariffs, as they are already subject to industry-specific tariffs, according to the White House.
Under Washington's scheme, the reciprocal tariffs for South Korea have been set at a lower range than those for China, Vietnam, and Taiwan, which will face 34 percent, 46 percent, and 32 percent duties, respectively. However, South Korea's rate is higher than the respective 24 percent, 20 percent, and 10 percent for Japan, the European Union, and Britain.