“My answer is straightforward if they complain: If you want your tariff to be 0%, you build your product right here in America.”

With that statement, former President Donald Trump made it official - the United States has begun threatening countries, including South Korea, with new tariffs.

On April 2, 2025, Trump announced a 25% reciprocal tariff on South Korea. This is a significant blow to a country whose economy heavily relies on exports. Although South Korea and the United States have a Free Trade Agreement (FTA), Trump’s stance diverges from its spirit. He argued that the U.S. agriculture industry must be protected and expanded.

The Korea Customs Service has been swiftly identifying U.S. tariff policy trends and sharing them with industries to help mitigate the damage. Since February 11, the agency has operated a “Task Force for Responding to Changes in U.S. Tariff Policy” and actively participated in cross-governmental coordination such as the “Support Team for Export Companies,” ensuring agile and strategic responses. 

Even major companies like Hyundai have announced plans to open new factories in Louisiana to avoid the looming tariffs. However, as more Korean companies shift production overseas, many young South Koreans lose domestic job opportunities. 

Despite the urgency, South Korea is facing a power vacuum due to the absence of a sitting president, missing what many see as a critical window for immediate negotiation. The Ministry of Trade, Industry, and Energy has requested a supplementary budget of 959.1 billion KRW to respond to the crisis. About 70% of that budget is allocated to support domestic companies impacted by the tariff dispute with the U.S. 

An additional 300 billion KRW has been added to support and grow key industries like semiconductors and secondary batteries.

With increasing pressure from U.S. tariffs, what is the best solution for the Korean economy moving forward? What specific plans are in place? South Korea must urgently devise alternative strategies to prevent further economic fallout.

김주하 강남포스트 학생기자  webmaster@ignnews.kr

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