Amid escalating trade tensions with the United States, South Korea is dispatching its Trade Minister, Cheong Inkyo, to Washington this week to discuss tariffs after President Donald Trump’s administration imposed a 25% levy on South Korean goods, Bloomberg reports.
The tariff, among the highest imposed on a US security ally, has sparked alarm in Seoul.
Minister Cheong’s two-day visit, beginning Tuesday, will involve discussions with US Trade Representative Jamieson Greer in an effort to negotiate a lower rate. President Trump stated on Sunday that he would not agree to tariff reductions unless they eliminate the US trade deficit with the country in question.
Last week, Acting President Han Duck-soo expressed concern that the higher-than-anticipated tariffs could place a “significant burden” on South Korea’s export-driven economy. The Kospi index, South Korea’s main stock index, plummeted 5.2% on Monday to its lowest level since November 2023, as the tariff war triggered a widespread selloff. Trading was briefly halted after Kospi futures experienced a sharp decline.
South Korea’s ability to navigate the protectionist policies of the Trump administration is further complicated by the ongoing political crisis stemming from former President Yoon Suk Yeol’s martial law decree. Last week, the Constitutional Court upheld Yoon’s removal from office, and a presidential election is expected on June 3, according to Yonhap.
In 2024, South Korea recorded a trade surplus of $55.7 billion with the United States, according to the customs office.
South Korea, a crucial US ally and a major exporter in Asia, is particularly susceptible to protectionist measures due to its heavy reliance on foreign earnings.
Yeo Han-koo, a former South Korean trade minister and current senior fellow at the Peterson Institute for International Economics, described a widespread mood of “urgency and crisis” in South Korea.
Opposition party leader Lee Jae-myung is currently leading in the polls to succeed Yoon, with 34% support in a recent Gallup poll.
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