Government Builds Preparedness in Response to US High Tariffs on China

Economic Advisory Meeting Chaired by Deputy Prime Minister for Economy Choi Sang-mok

Choi Sang-mok, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, is speaking on economic issues at the Economic Ministers' Meeting held at the Government Seoul Office in Jongno-gu, Seoul, on the 13th. Photo by Jo Yong-jun jun21@

Choi Sang-mok, Deputy Prime Minister for Economy and Minister of Strategy and Finance, emphasized on the 21st that "it is necessary to establish preparedness for various possible developments" in response to the United States' decision to impose high tariffs on China.

On the same day, the Ministry of Strategy and Finance, chaired by Deputy Prime Minister Choi, reviewed the impact of the U.S. high tariffs on China and the response direction at the '3rd Foreign Economic Advisory Meeting.' The Foreign Economic Advisory Meeting is an ad hoc body introduced last month to gather opinions from experts across various fields and refer to policy formulation in response to global uncertainties.

At the meeting, Deputy Prime Minister Choi stated, "Uncertainties in the global economic and trade environment are increasing, such as the U.S. announcing tariff hikes on strategic items worth about $18 billion imported from China."

On the 14th, U.S. President Joe Biden instructed the U.S. Trade Representative (USTR) to impose high tariffs on Chinese imports under Section 301 of the Trade Act. The targeted items include advanced industries such as electric vehicles, batteries, semiconductors, and solar power, with the import volume of these items reaching approximately $18 billion (as of the end of 2022). The core intent of this measure is interpreted as fundamentally blocking the inflow and growth path of Chinese advanced products.

Deputy Prime Minister Choi emphasized, "In response, it is necessary to diagnose the impact on the Korean economy based on analyses of past trade dispute cases and the current trade status between the U.S. and China, as well as to establish preparedness for various possible future developments."

Experts suggested, "Considering different transmission channels by company types?Korean companies operating in China, Korean companies exporting to China, and Korean companies competing with Chinese companies in other markets such as the U.S.?it is necessary to prepare response strategies and continuously monitor trends on the Chinese side."

Deputy Prime Minister Choi said, "Based on experts' opinions, we will closely communicate with the industry and spare no necessary support at the government-wide level."