South Korea Refuses to Retaliate Against U.S. Tariffs, Prepares for Trade Talks

Amid rising global trade tensions, South Korea has announced that it will not retaliate against the recent U.S. tariffs, reaffirming its commitment to dialogue and cooperation with Washington.

Han Duck-soo’s Statement: Historical Gratitude Shapes Our Policy
In an interview with the Financial Times, South Korea’s acting president Han Duck-soo stated that his country “will not respond” to the U.S. tariffs, citing the historical support provided by the United States after the Korean War, which significantly contributed to South Korea’s economic and technological growth.

Han emphasized, “We don’t view these tariffs as an attack, but rather as an opportunity to find mutually beneficial solutions.”

Upcoming Trade Talks in Washington

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South Korea’s Finance Minister Choi Sang-mok and Trade Minister Ahn Duk-geun are scheduled to meet with U.S. Treasury Secretary Scott Biscent and U.S. Trade Representative Jameson Greer in Washington this week, on the sidelines of the IMF and World Bank spring meetings.
The talks aim to address the 25% “reciprocal” tariffs imposed by the Trump administration, which were temporarily reduced to 10% for a 90-day negotiation window

Impact of the Tariffs on South Korea’s Economy

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The U.S. tariffs target key sectors of the South Korean economy, including automotive, electronics, and pharmaceuticals. Seoul has voiced concern over the potential impact on its exports, particularly as the United States became South Korea’s largest export market in 2024

Plans to Support the Domestic Economy

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In response to the economic pressures, South Korea has unveiled an additional support package worth 33 trillion won (approximately $23 billion) for the semiconductor industry, along with 3 trillion won (around $2 billion) in aid for the automotive sector

As attention turns to the upcoming trade negotiations in Washington, South Korea remains committed to a diplomatic approach and continued collaboration with the United States in hopes of overcoming economic challenges and strengthening bilateral ties