South Korea has formally requested exemption from aggressive U.S. tariff hikes proposed under Trump administration policies, citing longstanding free trade agreements and economic partnerships. Deputy Trade Minister Park Jong-won stressed Seoul's low tariff rates on American imports during critical meetings with U.S. trade representatives this week.
The Korea Development Institute recently revised its 2025 growth forecast downward by 0.4% amidst concerns about global trade disruptions. While steel and aluminum tariffs may have limited direct impact, officials warn that expanded duties on semiconductors and automotive exports could destabilize South Korea's $55.7 billion trade surplus with the U.S.
Reciprocal tariffs contradict decades of mutually beneficial trade frameworks,stated South Korea's Trade Ministry in an official release.
Acting President Choi Sang-mok convened emergency meetings to analyze ripple effects across key sectors:
- Semiconductor exports (25% of total U.S.-bound trade)
- Automotive manufacturing partnerships
- Pharmaceutical supply chains
With tariff rates on U.S. manufacturing imports already near 0%, South Korean officials argue new trade barriers would disproportionately harm companies investing billions in American infrastructure projects. Economic planners are closely monitoring responses from the EU, China, and Japan to align strategies.
Recent ministry data shows South Korean firms created over 45,000 U.S. jobs through direct investments since 2020. Analysts emphasize that prolonged trade disputes could disrupt vital technology partnerships in AI and next-generation chip production.
