South Korea Urges U.S. to Exempt It from Tariffs

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South Korea Urges U.S. to Exempt It from Tariffs \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ South Korea has formally requested an exemption from new U.S. tariffs, emphasizing that Seoul already maintains low duties on American imports under its free trade agreement (FTA) with Washington. Deputy Trade Minister Park Jong-won met with U.S. officials in Washington to discuss concerns over Trump’s proposed reciprocal tariffs and increased duties on steel, aluminum, semiconductors, and cars. South Korean officials warn that these trade policies could hurt the nation’s economy, as the Korea Development Institute slashed its growth forecast to 1.6% for 2025.

South Korea Fights for Tariff Exemption: Quick Looks

Seoul Requests Tariff Exemption: South Korea urged the Trump administration to exclude it from new U.S. trade tariffs, citing its low duties on American goods under the KORUS FTA.
Concerns Over Economic Impact: South Korea’s economic growth forecast was cut to 1.6% for 2025, as analysts warn U.S. tariffs on semiconductors and cars could hurt its trade-dependent economy.
Trade Surplus With U.S.: South Korea’s trade surplus with the U.S. reached $55.7 billion in 2024, making it a target for Trump’s reciprocal tariff policies.
Government Calls Emergency Meeting: Acting President Choi Sang-mok met with trade and foreign policy officials to assess the risks of Trump’s tariffs and strengthen Seoul’s diplomatic response.
Monitoring Global Responses: South Korea is closely watching how the EU, Japan, and China react to Trump’s expanding tariffs before deciding its next course of action.
Semiconductors & Auto Exports at Risk: While steel and aluminum tariffs may have minimal impact, higher U.S. duties on semiconductors and cars could severely hurt South Korea’s key industries.
Trump’s Reciprocal Tariff Plan: The administration is raising tariffs on countries with large U.S. trade surpluses, potentially escalating trade tensions with key allies.
Diplomatic Talks Continue: South Korean officials have engaged with the White House, Commerce Department, and USTR but have not yet received a formal response to their request.

Crackdown

Seoul Pushes Back Against U.S. Tariffs

South Korea is pressing the Trump administration to exclude it from aggressive tariff hikes, arguing that the country already maintains low tariffs on U.S. products under their bilateral free trade agreement (KORUS FTA).

Deputy Trade Minister Park Jong-won met with U.S. officials from the White House, Department of Commerce, and U.S. Trade Representative’s office this week in Washington, D.C., where he formally requested that South Korea be exempted from Trump’s tariff measures.

According to South Korea’s Trade Ministry, Park emphasized:

South Korea’s role as a major U.S. trade partner
Billions in South Korean investments that benefit the American economy
Seoul’s already-low tariffs on U.S. goods, which average close to zero

While the South Korean government did not disclose how U.S. officials responded, the move highlights growing concerns over Trump’s efforts to overhaul global trade policy.

What’s Driving Trump’s Tariff Strategy?

Trump’s “reciprocal tariffs” policy aims to match the duties imposed by trade partners on U.S. goods. As part of this, his administration has proposed raising tariffs on imported steel, aluminum, semiconductors, automobiles, and pharmaceuticals.

With South Korea’s trade surplus with the U.S. reaching $55.7 billion in 2024, Seoul fears that Trump’s tariffs could severely impact its export-driven economy.

“We are carefully monitoring how other major economies, including the EU, Japan, and China, are responding to Trump’s trade measures,” said South Korea’s acting president and finance minister, Choi Sang-mok.

Choi convened a meeting with trade and foreign policy officials to assess the potential economic fallout and strategize Seoul’s response to U.S. tariffs.

South Korea’s Economic Growth Forecast Slashed

The Korea Development Institute (KDI), a state-run think tank, cut its 2025 economic growth forecast to 1.6%, down 0.4 percentage points from its previous estimate.

The downgrade reflects concerns over:

Trump’s expanding tariffs and their impact on South Korean exports
Potential increases in U.S. duties on semiconductors and automobiles
A slowdown in global trade, affecting South Korea’s export-heavy economy

While Trump’s steel and aluminum tariffs are expected to have minimal impact—as these products make up less than 1% of South Korea’s U.S. exports—increased duties on semiconductors and cars could deliver a significant blow.

South Korea’s economy heavily depends on exports, and the U.S. is one of its largest trade partners. Given this, any protectionist measures by Washington could destabilize South Korean industries and affect global supply chains.

How Other Nations Are Responding

Seoul is not alone in its concerns. The European Union, Japan, and China are also exploring responses to Trump’s tariff measures.

South Korea’s government has instructed officials to:

Monitor how other global economies are countering U.S. trade policies.
Strengthen diplomatic efforts to communicate Seoul’s position to Washington.
Consider retaliatory measures if South Korea is not exempted.

With Trump prioritizing trade protectionism, many countries are scrambling to adjust their policies and protect their industries from potential economic fallout.

What’s Next?

The coming weeks will be critical in determining whether South Korea secures a tariff exemption from the Trump administration.

If granted, it could preserve strong U.S.-Korean trade relations and prevent major disruptions to South Korea’s economy.
If denied, South Korea may retaliate with countermeasures, further straining trade ties.

South Korean officials remain hopeful that bilateral trade relations, longstanding economic partnerships, and ongoing negotiations will help prevent tariffs from taking full effect.

For now, Seoul is in wait-and-see mode, closely watching Trump’s next moves on global trade policy.