- South Korea requests exemption from US reciprocal tariffs set for April.
- Trade Minister Cheong In-kyo meets US counterpart Jamieson Greer to discuss tariffs.
- US President Trump announces reciprocal tariffs on all trading partners from April.
- Trump accuses South Korea of imposing tariffs four times higher than the US.
- South Korea disputes the claim, citing a 0.79% tariff rate on US imports.
South Korea has officially asked the US to exempt it from the upcoming reciprocal tariffs, which are set to take effect on April 2. This request followed Trade Minister Cheong In-kyo’s visit to Washington, where he met US Trade Representative Jamieson Greer to address concerns about the tariffs.
Earlier this month, President Donald Trump’s administration announced its plan to impose these tariffs on all trading partners. This decision is part of a broader strategy to enforce higher tariffs on countries that apply substantial tariffs on US goods. As a result, South Korea is among the nations affected.
Tensions Over Tariff Rates
President Trump recently criticized South Korea for imposing tariffs four times higher than those of the US. He tweeted that this was a major issue in their trade relationship. The accusation has raised concerns in Seoul, a long-time ally of the US.
South Korea quickly responded, rejecting Trump’s claim. The government pointed out that their effective tariff rate on US imports is just 0.79% as of 2024. This rate comes from their long-standing free trade agreement (FTA) with the US.
The Ministry of Trade also defended the tariffs, stating that they align with the FTA. They clarified that the tariffs are not as high as Trump implied. This dispute highlights ongoing tensions in the US-South Korea trade relationship.
Diplomatic Efforts to Resolve Trade Tensions
During a meeting with Jamieson Greer, Minister Cheong emphasized the need to continue diplomatic efforts. Both sides agreed to keep the conversation open and work on mutually beneficial progress. The goal is to resolve issues without worsening tensions between the US and South Korea.
The discussions were critical for South Korea. The country hopes to avoid being caught in the middle of the US’s trade disputes. As close economic partners, South Korea wants to protect its relationship with the US while preventing unfair trade barriers.
South Korea’s acting President, Choi Sang-mok, also got involved. He expressed concern over Trump’s “America First” policies targeting South Korea. Choi ordered the government to take more proactive steps in communicating with the US to resolve misunderstandings and prevent escalation.
Choi’s comments highlight concerns in Seoul. South Korea relies heavily on exports, especially in electronics and automobiles. New trade barriers could hurt the country’s industries, adding more pressure on its economy.
Can They Avoid a Trade War?
With the April deadline approaching, the US and South Korea will likely keep talking to resolve the tariff dispute. Both nations understand the importance of their economic ties. There’s hope they can avoid a trade war. Still, it’s unclear if they will reach an agreement before tariffs take effect.
In the next few weeks, US-South Korea trade relations will be at a crossroads. Early talks have been positive, but both sides need to work hard. South Korea’s request for an exemption shows rising tensions. It’s unclear if a resolution will come in time to protect their economic relationship.