South Korea to prepare support measures as US tariffs loom
[SEOUL] South Korea’s finance minister said on Monday (Apr 7) that the government would prepare support measures for sectors with urgent needs, ahead of US President Donald Trump’s 25 per cent tariff, which will come into force this week.
“Minister Choi Sang Mok emphasised the need to analyse the impact on the macroeconomy and prepare support measures for sectors with urgent needs,” the ministry said in a statement.
On April 2, Trump introduced a blanket tariff on imports to the US and higher tariffs against “worst offenders”, including a 25 per cent duty on imports from South Korea, set to come into force on Wednesday.
After Trump’s announcement, South Korea’s acting President Han Duck Soo said last week the government would prepare by this week support measures for the auto sector and seek negotiations with the Trump administration.
South Korea’s exports to the United States hit a record high of US$127.8 billion in 2024, with automobiles - the top-selling product - accounting for 27 per cent of the total.
On Monday, Finance Minister Choi and other policymakers also reviewed a response strategy ahead of the trade minister’s visit to the United States this week, the finance ministry said.
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During the visit from Tuesday to Wednesday, Cheong In Kyo, Minister for Trade, plans to meet with US Trade Representative Jamieson Greer and make a request to lower the 25 per cent rate, according to the trade ministry.
Cheong’s upcoming visit will be the fifth senior-level visit from the Ministry of Industry, Trade and Energy since Trump took office. He had visited in March, while Industry Minister Ahn Duk Geun visited twice. Deputy Minister Park Jong Won also visited, seeking tariff exemptions.
Trump has not met or talked with any of South Korea’s acting leaders but invited Hyundai Motor Group’s chairman Euisun Chung to the White House for an announcement of the automaker’s US$21 billion investment in the US.
Separately, South Korea’s financial regulator on Monday asked firms and state institutions to be prepared to provide liquidity support for exporting companies and their contractors hit by tariffs.
As the benchmark KOSPI stock index dropped to a 17-month low amid a global sell-off of risky assets on US tariffs, the regulator also said it would prepare a market stabilising programme worth 100 trillion won (S$91.6 billion). REUTERS
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