U.S. President Donald Trump announced that he would impose item-specific tariffs and reciprocal tariffs on April 2. Meanwhile, the Ministry of Trade, Industry and Energy stated that it would respond after the reciprocal tariffs are imposed. It believes there is a high possibility that South Korea will be included in the reciprocal tariff measures and plans to negotiate with the United States afterward.
A senior official from the Ministry of Trade, Industry and Energy noted during a press briefing at the government Sejong office on the 24th that Minister Ahn Duk-geun's achievements during his visit to the United States on the 20th to 21st of this month were significant. He explained that the effective tariff in the United States is close to '0', clarifying any misunderstandings, but said that he did not receive a response regarding non-tariff issues.
The senior official from the Ministry of Trade, Industry and Energy said, “Ultimately, President Trump will decide on the tariffs, so U.S. officials are also being cautious with their words,” adding that they are preparing under the assumption that tariffs will be imposed, as there are fewer than ten days remaining. He further noted, “We are preparing for the worst-case scenario.”
President Trump has proclaimed that he will implement comprehensive tariff measures on all countries on April 2. However, on the 21st, he stated that he would impose reciprocal tariffs without exception while indicating a willingness to respond flexibly through negotiations.
The senior official from the Ministry of Trade, Industry and Energy mentioned, “Tariffs will differ by country, but it will be difficult to vary tariffs in detail by item,” and added, “In this case, items with high export volumes to the U.S. will be most affected, and the government is reviewing how to provide support by industry.”
The reciprocal tariffs anticipated by Trump are reported to consider not only tariffs but also non-tariff barriers such as quarantine and subsidies. The senior official from the Ministry of Trade, Industry and Energy commented, “We are continuously discussing this through the Korea-U.S. Free Trade Agreement (FTA) implementation system,” and added, “We are currently explaining that there is justifiable reasoning on Korea's part regarding the U.S. criticisms.”
During the meeting, U.S. Secretary of Commerce Howard Ratnik reportedly requested that 'more American products be sold in Korea.' The Office of the United States Trade Representative communicated specific grievances from corporations regarding the Online Platform Fairness Act and remarked that 'Korea's actions are necessary.'
Meanwhile, Minister Ahn discussed the removal of Korea's designation as a sensitive country during his visit to the United States. Minister Ahn and Secretary of Energy Chris Wright established a consensus on the need to quickly resolve the sensitive country issue during their first meeting and agreed to commence working-level consultations immediately.
The senior official from the Ministry of Trade, Industry and Energy stated, “The Ministry of Foreign Affairs, the Ministry of Science and Technology, and the Ministry of Trade, Industry and Energy have been closely communicating and have started joint working-level consultations with the United States,” but added, “It is difficult to predict that Korea will be excluded from the list before the sensitive country designation takes effect.”
The two countries agreed during this meeting that there is significant potential for cooperation in various areas, including liquefied natural gas (LNG), nuclear power, and hydrogen. They also decided to resume energy dialogues that had been halted due to COVID-19 and elevate them from director-general level to ministerial discussions. It was decided to conduct energy forums centered on private companies.
South Korea and the United States plan to continue discussions on the $64 trillion Alaska LNG project. Minister Ahn is scheduled to meet with Dunleavy, the Governor of Alaska, on the 25th to discuss specific cooperation plans for the Alaska LNG project. Japan expressed its intention to participate in this project last month, and Taiwan recently signed a letter of intent for purchase and investment.