S. Korea to hold emergency meets with major industries after US tariffs

IANS April 4, 2025 195 views

South Korea is preparing a strategic response to the US tariff announcement by holding emergency meetings across key industrial sectors. The government aims to minimize potential economic damage through supportive measures like export vouchers and financial injections. US President Donald Trump's new tariff plan threatens to disrupt Korean export markets and potentially trigger a broader trade conflict. These developments come at a sensitive time, with added economic pressure from recent political upheaval in South Korea.

"The ministry will work to minimise the damage on local companies" - Lee Seung-ryeol, Deputy Industry Minister
Seoul, April 4: The government will hold a series of emergency meetings with representatives from major South Korean industries expected to suffer damage from the United States' hefty tariffs, the industry ministry said on Friday.

Key Points

1

US imposes 10% baseline and 25% reciprocal tariffs on Korean imports

2

Korean industries seek government support and export strategies

3

Stock markets drop amid trade tensions and political uncertainty

4

Ministry plans comprehensive damage assessment and industry protection

The Ministry of Trade, Industry and Energy held a meeting with officials from the home appliances, display and machinery industries earlier in the day and plans to hold a separate meeting with those from the rechargeable battery, petrochemical and textiles industries on Monday, according to ministry officials.

In Friday's meeting, the home appliances, display and machinery companies called for active support measures by the government to minimise U.S. duties' impact on local businesses, including export vouchers and emergency cash injections, reports Yonhap news agency.

The companies expressed concerns over a potential drop in their exports to America and increased competition in overseas markets other than the U.S., according to the ministry.

On Thursday, U.S. President Donald Trump unveiled plans to impose 10 percent baseline tariffs on imports from all foreign countries, as well as "reciprocal" tariffs, including 25 percent duties for South Korea, sparking fears of a global trade war.

The baseline and reciprocal tariffs will go into effect on Saturday and Wednesday (US time), respectively.

"The ministry will work to minimise the damage on local companies by closely assessing the effects of reciprocal tariffs in each sector, and use all of the government's available resources to boost the fundamental competitiveness of our industries," said Lee Seung-ryeol, deputy minister for industry policy at the ministry.

Meanwhile, South Korean stocks dropped for the third consecutive session on Friday amid the Constitutional Court's historic ruling to oust President Yoon Suk Yeol and rising concerns over looming tariff wars. The local currency rose sharply against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) lost 21.28 points, or 0.86 percent, to close at 2,465.42.

Trade volume was moderate at 690.4 million shares worth 10.7 trillion won ($7.46 billion), with winners beating losers 560 to 328.

Foreigners sold a net 1.79 trillion won worth of stocks, while individuals purchased a net 1.07 trillion won and institutions scooped up a net 620.4 billion won.

Reader Comments

J
James K.
These tariffs are really concerning for our export-driven economy. Hope the government can negotiate better terms with the US. Our industries have worked too hard to lose ground now. 🇰🇷
S
Soo-ji P.
The battery industry especially needs protection - we're world leaders in this sector! Emergency meetings are good, but we need concrete action plans ASAP.
M
Min-ho L.
While I understand the urgency, I wish the government had been more proactive about this. These tariff threats didn't come out of nowhere. Better preparation could have softened the blow.
E
Eun-ji K.
This is why we need to diversify our export markets! Over-reliance on any single country makes us vulnerable. Maybe this will push companies to explore more opportunities in Europe and Southeast Asia.
T
Tae-yang N.
The stock market reaction says it all... three straight days of losses. My retirement fund is taking a hit from this trade war talk. Hope cooler heads prevail soon.
A
A-ram J.
Interesting that the won rose against the dollar despite all this. Shows how complex global trade really is! 🤔 Hope the government's measures will be equally nuanced.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Tags:
US Tariffs South Korea Trade Donald Trump Economic Policy Industrial Impact Lee Seung-ryeol
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