Archive · 30 Jun 2025
Experts: US Tariffs to Hurt South Korean Economy
The US is planning to put tariffs on goods from South Korea, which could hurt their economy.
Experts are worried this will make it harder for South Korean companies to sell their products in the US.
They're asking the South Korean government to talk to the US to try and make things better.
If the tariffs happen, it might make South Korea's economy shrink a little bit.
The South Korean government is trying to get the US to not put tariffs on things like steel and cars.
They also have to figure out how to handle disagreements about trade, like how much South Korea buys from the US and new rules for things like online businesses.
US tariff measures are expected to negatively impact the South Korean economy, particularly exports.
Trade experts are urging proactive negotiations between South Korea and the US to mitigate the impact.
A KIEP study estimates a potential 0.3-0.4% decrease in South Korea's GDP if tariffs fully take effect.
South Korea is seeking exemptions and reductions on US tariffs on various sectors like steel and automobiles.
Discussions include addressing the trade deficit and potential regulations for online platforms.
- Who
- Trade experts, the South Korean government, and the US administration.
- What
- Impact of US tariff measures on the South Korean economy.
- When
- The measures are currently under negotiation, with a 90-day pause on US reciprocal tariffs ending July 8.
- Where
- South Korea and the United States.
- Why
- To address the US's trade deficit with South Korea and potential regulations.
South Korean Concerns
US Trade Objectives
Tariff Effects and Trade Imbalance
South Korean Concerns
South Korea is worried about potential damage from the tariffs, particularly the decline in exports and impact on manufacturing industries.
US Trade Objectives
The US wants to address its trade deficit with South Korea and seeks changes in regulations.
Agriculture Regulations
South Korean Concerns
There are concerns over lifting regulations related to agriculture, like the ban on import of older US beef.
US Trade Objectives
The US may not find this issue important.
- US Exports to South Korea
- $66 billion trade deficit in goods.
- GDP Decrease (KIEP estimate)
- 0.3 to 0.4%
- Sectors Concerned
- Manufacturing (automobiles, semiconductors), agriculture
- Key Industries
- Defense, shipbuilding, energy
- Tariff Negotiations Deadline
- July 8