South Korea faces eased uncertainties with US tariff deal: Industry Minister
South Korea’s trade deal with the United States has eased export uncertainties, reducing tariffs to 15 per cent and opening opportunities for Korean companies while the government pledges further support for competitiveness.
Seoul: Uncertainties surrounding South Korea’s exports have lessened after the country struck a trade deal with the United States last week, Seoul’s industry minister said on Monday, vowing efforts to devise additional measures to help Korean companies strengthen their competitiveness.
“With the trade deal with the US, short-term export uncertainties for Korean businesses have been resolved, and we have secured conditions that are not unfavorable compared to those of our rival countries,” Industry Minister Kim Jung-kwan said during a meeting to discuss export strategies in light of US tariff measures.
The meeting was attended by officials from the Ministry of Trade, Industry and Energy; major business lobby groups, including the Korea Chamber of Commerce and Industry and the Korea International Trade Association; and associations representing the auto, semiconductor, shipbuilding and other industries.
“The government will work to strengthen cooperation with the US in strategic sectors, such as shipbuilding, automotive, semiconductor and biopharmaceutical, and help Korean companies find new opportunities in the American market,” Kim said.
Under the latest trade agreement, US President Donald Trump’s administration lowered reciprocal tariffs for South Korea to 15 per cent from the initially proposed 25 per cent in return for Korea’s pledge to invest US$350 billion in the US and purchase $100 billion worth of American liquefied natural gas (LNG) and other energy products. Tariffs for Korean cars were also reduced to 15 per cent from 25 per cent.
Japan and the European Union face similar tariff rates as South Korea.
Despite the trade deal, the minister vowed efforts to boost the fundamental competitiveness of Korean industries and devise additional support measures for export companies amid the US administration’s ongoing protectionist trade policies.