Acting President Han Convenes Emergency Economic Security Strategy TF
Urges Industry Minister to "Negotiate with the U.S. to Minimize Damage"
Opposition Pushes to Impeach Han Duck-soo and Choi Sang-mok... U.S. Negotiations Expected to Be Difficult
Prime Minister and Acting President Han Duck-soo emphasized on the 3rd, immediately after the U.S. government announced a 25% tariff imposition on South Korea, that "the global tariff war is becoming a very serious reality," urging the preparation of urgent support measures for companies and industries while actively engaging in negotiations with the U.S. to resolve the issue.
Acting President and Prime Minister Han Duck-soo is presiding over an urgent Economic Security Strategy TF meeting on mutual response relations at his office in the Government Seoul Office Building, Jongno-gu, Seoul, on the 3rd. (Yonhap News)
At 7 a.m. that day, Acting President Han held an emergency Economic Security Strategy Task Force (TF) meeting at the Government Seoul Office to assess the damage caused by the U.S. reciprocal tariff announcement and discuss countermeasures. The meeting was attended by Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance; Ahn Deok-geun, Minister of Trade, Industry and Energy; and Jung In-kyo, Chief Negotiator for Trade.
After receiving a report on the main details of the U.S. reciprocal tariffs, Acting President Han said, "The government must pour all its capabilities into overcoming this trade crisis," and urged Minister Ahn, "Closely analyze the detailed contents and impacts of the reciprocal tariffs announced today together with the companies." He especially emphasized, "Now that the stage for full-scale negotiations is opening, actively engage in negotiations with the U.S. to minimize damage."
Acting President Han also instructed the relevant ministries to "promptly prepare urgent support measures at the government-wide level for industries and companies affected by the U.S. government's tariff imposition, such as the automobile sector."
Earlier, U.S. President Donald Trump officially announced on the afternoon of the 2nd (local time) that a 25% reciprocal tariff would be imposed on products produced in South Korea and imported into the U.S. In addition to South Korea, the reciprocal tariff rates by country were disclosed as follows: China 34%, European Union (EU) 20%, Vietnam 46%, Taiwan 32%, Japan 24%, and India 26%.
This official announcement is expected to mark the beginning of a full-scale global trade war triggered by Trump. South Korea has a Free Trade Agreement (FTA) with the U.S., so tariffs have effectively been nonexistent until now, but major export items are expected to suffer significant damage going forward. As of last year, South Korea's trade surplus with the U.S. reached a record high of $55.7 billion.
Acting President Han will also hold an Economic Security Strategy TF meeting in the afternoon to discuss response measures. This meeting is expected to include not only the government but also major companies. In the morning, the government held a 'Macroeconomic and Financial Issues Meeting' chaired by Deputy Prime Minister Choi Sang-mok to assess the impact on financial and foreign exchange markets, and at 11:30 a.m., Minister Ahn will chair a 'Public-Private Joint U.S. Tariff Measures Countermeasure Meeting' to establish a strategy for responding to the U.S.
Although Acting President Han emphasized active negotiations with the U.S., considering the leadership vacuum amid the presidential impeachment crisis, it is expected to be difficult. South Korea's diplomatic power toward the U.S. has weakened to the extent that even a phone call with President Trump could not be arranged under the acting president system. In particular, the opposition party has even threatened impeachment against Acting President Han and Deputy Prime Minister Choi, increasing the possibility of greater uncertainty in national affairs going forward.
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