South Korea seeks to resolve any ‘misunderstanding’ with US about tariff rates

SEOUL – South Korea’s acting president on March 10 ordered the authorities to actively communicate with the US administration to resolve any misunderstanding over tariffs, after US President Donald Trump recently singled out South Korea for applying high tariffs.

Mr Trump, who has told his economic team to prepare reciprocal tariff plans by early April, said last week during an address to the US Congress that South Korea’s average tariff was four times higher than that of the US despite military and other assistance Washington has provided to its Asian ally.

Acting President Choi Sang-mok “ordered to actively explain to the US about any misunderstanding of our tariff rates on US imports”, the Finance Ministry said in a statement.

South Korea imposes the second-highest tariff rate among the US’ top 15 trading partners, after India.

For US imports, however, nearly all tariffs are eliminated under their free trade agreement, first signed in 2007 and revised in 2018 during Mr Trump’s first term.

As at 2024, South Korea’s effective tariff rate on US imports stood at 0.79 per cent, according to Seoul’s Trade Ministry.

Mr Choi said the government would also review non-tariff measures, which Mr Trump said would be considered in his reciprocal tariff plan.

He asked South Korean officials to prepare for consultations with the US on cooperation in the shipbuilding and energy sectors.

Mr Trump said during his speech that Japan, South Korea and other countries wanted to partner on a natural gas pipeline in Alaska.

South Korea’s Industry Ministry has said the country would “actively engage” in discussions with the US on the project, though no details have been decided. REUTERS