SEOUL TO DEVISE SUPPORT MEASURES FOR LOCAL INDUSTRIES

SEOUL, April 3 (Bernama-Yonhap) – The South Korean government will "swiftly" devise support measures to prevent the potential fallout on local industries from the US administration's plan to slap 26 per cent reciprocal tariffs on South Korea, the Industry Minister said on Thursday, expressing "regret" over Washington's latest move, Yonhap News Agency reported.

"We regret that the US tariff measures, which have a significant impact on the global trade environment, have become a reality," Industry Minister Ahn Duk-geun said in an emergency meeting with officials from various Korean industries, economic organisations, and research institutes held to discuss a response strategy to the new US duties.

Ahn said the government will “swiftly” devise support measures for industries likely to suffer damage from US tariffs and push for ministerial-level talks with Washington for "active" negotiations on the matter.

“The government seriously views the possible negative impact the US tariffs could have on South Korea's exports to the US, as well as the global trade market,” he added.

Earlier in the day, US President Donald Trump announced plans to impose a 10 per cent "baseline" tariff on imports from all foreign countries, as well as "reciprocal" tariffs, including 25 per cent duties for South Korea.

Washington later revised the country-specific rate for Korea to 26 per cent.

Seoul's industry ministry explained that the reciprocal tariff rate includes the baseline 10 per cent duties.

The baseline and reciprocal tariffs will go into effect at 12:01 am on Saturday (US time) and 12:01 am next Wednesday, respectively.

Some goods are not subject to reciprocal tariffs, including steel, aluminium, automobiles, and key auto parts — the targets of already announced or enforced industry-specific tariffs, according to the White House.

Under Washington's scheme, reciprocal tariffs for South Korea have been set at a lower range than those for China, Vietnam, and Taiwan, which will face 34 per cent, 46 per cent, and 32 per cent duties, respectively, but at a higher range than the respective 24 per cent, 20 per cent, and 10 per cent for Japan, the European Union, and Britain.

After the emergency meeting, Deputy Trade Minister Park Jong-won told reporters that the government will work to find a “mutually beneficial” solution for both Seoul and Washington regarding the tariff issue.

When asked if the reciprocal tariffs could lead to a renegotiation of the Korea-US Free Trade Agreement (FTA), Park said it was "too early" to talk about such topics, adding that the US administration has not yet mentioned the renegotiation of the bilateral trade pact.

Some experts have raised scepticism over the effectiveness of the Korea-US FTA, as South Korea became subject to a relatively high tariff despite its free trade deal with the US.

"The FTA does have meaning in that South Korea will face lower tariffs compared to Japan, considering the reciprocal duties will be added to the existing duties," Heo Yoon, chairman of the National Trade Negotiation Advisory Committee, explained. Japan does not have a bilateral FTA with the US.

-- BERNAMA-YONHAP