South Korea to prepare support measures as US tariffs loom

SEOUL – South Korea’s finance minister said on April 7 that the government would prepare support measures for sectors with urgent needs ahead of US President Donald Trump’s 25 per cent tariff, which will come into force this week.

“Minister Choi Sang-mok emphasised the need to analyse the impact on the macroeconomy and prepare support measures for sectors with urgent needs,” the Finance Ministry said in a statement.

On April 2, Mr Trump introduced a blanket tariff on imports to the United States and higher tariffs against “worst offenders”, including a 25 per cent duty on imports from South Korea, set to come into force on April 9.

After Mr Trump’s announcement, South Korea’s Acting President Han Duck-soo said last week the government would prepare by this week support measures for the auto sector and seek negotiations with the Trump administration.

South Korea’s exports to the US hit a record high of US$127.8 billion (S$172 billion) in 2024, with automobiles – the top-selling product – accounting for 27 per cent of the total.

On April 7, Mr Choi and other policymakers reviewed a response strategy ahead of Trade Minister Cheong In-kyo’s visit to the US, the Finance Ministry said.

Mr Cheong’s upcoming visit will be the fifth senior-level visit from the Ministry of Industry, Trade and Energy since Mr Trump took office.

He had visited in March, while Minister of Trade, Industry and Energy Ahn Duk-geun visited twice. Deputy Minister Park Jong-won also visited, seeking tariff exemptions.

Mr Trump has not met or talked with any of South Korea’s acting leaders but invited Hyundai Motor Group chairman Chung Eui-sun to the White House for an announcement of the automaker’s US$21 billion investment in the US.

Separately, South Korea’s financial regulator on April 7 asked firms and state institutions to be