South Korea seeks exemption from Trump tariffs

SEOUL – South Korean officials requested an exemption from US reciprocal, steel and aluminium tariffs during their visit this week to Washington, the Ministry of Trade, Industry and Energy said in a statement on Feb 21.

Deputy Trade Minister Park Jong-won, who led the first major South Korean government delegation to visit Washington since US President Donald Trump announced sweeping tariffs, argued that almost all tariffs between the two countries have already been eliminated under their free trade agreement.

As a major global exporter and top trading partner with the United States, South Korea has viewed Mr Trump’s measures with increasing concern.

Mr Park touted investments in the US by South Korean companies and proposed holding high-level meetings with the Trump administration to discuss further cooperation, the ministry said.

He also met members of Congress and pressed them to maintain incentives for South Korean companies to operate in the US.

“In the future, the government will continue to consult at a high level on US trade and trade measures, and will respond to minimise damage to Korean companies through close communication with the industry,” the ministry’s statement said.

South Korean Acting President Choi Sang-mok said last week that the country had invested more than any other in the US in the past two years, and that should allow it to negotiate with the Trump administration on tariffs.

On Feb 21, Mr Choi ordered the authorities to reach out to the US more actively to seek cooperation and monitor response measures being taken by others, such as the European Union, Japan and China.

Japan has asked Washington to exclude it from steel and aluminium tariffs, while China has responded to US measures with retaliatory tariffs.

The EU said this week it was ready to discuss trade deals and lower tariffs.

“Given their substantial role in supporting US economic objectives, we think Korea and Japan are in a strong position to seek tariff exemptions,” Standard Chartered Bank economists said in a note, citing the more than 20,000 US jobs South Korea contributed in 2023, more than any other country.

Seoul’s responses to the Trump administration’s moves have been complicated by a political crisis sparked when President Yoon Suk Yeol briefly imposed martial law in December.

South Korea’s industry minister on Feb 21 met the acting US ambassador in Seoul and said policies affecting trade and investment between the two countries should remain consistent and stable.

A delegation from the Korea Chamber of Commerce and Industry representing 20 South Korean companies also travelled to the US this week to meet policymakers, including officials at the White House, who expressed satisfaction with the meeting, the Chamber said in a statement.

Mr Choi, who took over after both Mr Yoon and the prime minister were impeached, has yet to speak directly with Mr Trump. REUTERS