South Korea Responds to U.S. Tariffs with Emergency Support Measures
- Rahaman Hadisur
- Apr 4
- 2 min read
Hadisur Rahman, Jadetimes Staff
H. Rahman is a Jadetimes news reporter covering Business
In response to the imposition of new U.S. tariffs, South Korea’s Acting President Han Duck soo has ordered emergency support measures to assist affected businesses, particularly those in the automobile and semiconductor industries. The South Korean government is actively seeking negotiations with Washington to mitigate the potential economic fallout from the tariffs.
Impact of U.S. Tariffs on South Korea
U.S. President Donald Trump recently announced a series of global reciprocal tariffs, which include a 25% duty on South Korean imports. The decision, aimed at addressing perceived unfair trade practices, poses a significant threat to South Korea’s export driven economy.
Trump’s announcement also included a 46% tariff on imports from Vietnam, a country where major South Korean corporations such as Samsung Electronics and LG Electronics have established key manufacturing bases. The move further exacerbates concerns over South Korea’s economic stability and its ability to maintain global supply chains.
Market Reactions and Economic Ramifications
Following the tariff announcement, the benchmark KOSPI index fell as much as 2.7% to a three-month low. Automakers recorded their lowest levels in over 14 months, while chipmakers and battery producers, including LG Energy Solution, experienced sharp declines.
“For the domestic economy, a significant blow will be inevitable,” said Park Sang hyun, an economist at iM Securities. “Major export products, such as automobiles, will be hit hard, and exports to the U.S. through production bases in Vietnam will also suffer.”
Government’s Strategic Response
In an emergency meeting with top financial and industry officials, Acting President Han emphasized the need for immediate government intervention. He instructed the industry minister to analyze the specifics of the tariffs and initiate negotiations with U.S. counterparts.
“As the global trade war has become a reality, the government must pour all its capabilities into overcoming this crisis,” Han stated.
Finance Minister Choi Sang mok assured that financial authorities would deploy all available tools to stabilize markets if excessive volatility ensues. Han is also scheduled to meet with private sector representatives later in the day to discuss further responses and potential countermeasures.
Seeking Exemptions and Trade Stability
Before the tariff announcement, South Korean officials had sought exemptions, citing the comprehensive free trade agreement between Seoul and W
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