Choi Sang-mok: "Impact of US Reciprocal Tariffs is Small, Thoroughly Inspect Our Vulnerabilities"

Choe Sang-mok, Acting President and Deputy Prime Minister as well as Minister of Economy and Finance, is speaking at the Foreign Economic Issues Meeting held at the Government Seoul Office Building on the 14th. Photo by Ministry of Economy and Finance

Choi Sang-mok, Acting Prime Minister and Minister of Economy and Finance, stated on the 14th that the impact of the United States' reciprocal tariff measures is not significant on our economy due to the low applied tariff rates under the Korea-US FTA.

Acting Minister Choi made this remark during a meeting on external economic issues held that day, discussing the impact of President Donald Trump's reciprocal tariff imposition on our economy and the direction of our response. On the 13th (local time), President Trump announced that reciprocal tariffs would be imposed on various countries, taking into account their tariff and non-tariff barriers.

The government maintains that the tariff rates imposed on imports from the US to Korea are extremely low. The Ministry of Economy and Finance explained that Korea signed a Free Trade Agreement (FTA) with the US in June 2007, and the average tariff rate was about 0.79% as of last year. Considering the effective tariff rate after refunds, the tariff rate is even lower, and according to the annual concession schedule, it will decrease further this year.

However, Acting Minister Choi emphasized, "Considering that the US has indicated it will evaluate not only tariffs but also non-tariff barriers such as value-added tax and digital service tax, it is necessary to closely monitor the situation."

He also instructed, "Identify the key concerns of the US side, have relevant ministries form a task force to thoroughly examine our vulnerabilities and non-tariff barriers, and prepare materials to explain to the US, ensuring thorough preparedness."