The won-dollar exchange rate has once again surpassed 1,470 won due to U.S. President Donald Trump's "tariff bomb."
According to the Seoul foreign exchange market on the 3rd, the won-dollar exchange rate opened at 1,471 won, up 4.4 won from the previous trading day's closing price (1,466.6 won). As of 9:32 a.m., it recorded 1,470.2 won.
Donald Trump, the U.S. president, noted that around 5 a.m. Korean time on this day, he would impose a basic 10% tariff on all products imported into the U.S., while additionally imposing mutual tariffs on major countries.
A 25% mutual tariff will be imposed on Korean products. This is higher than that of the European Union (20%) and Japan (24%), but lower than that of China (34%) and Vietnam (46%). Initially, the market expected South Korea's mutual tariff to be around 20%, but it exceeded that.
Min Kyung-won, a researcher at a Research Institute, said, "Today's exchange rate is expected to rise as the atmosphere of risk aversion intensifies due to Trump's higher-than-expected mutual tariffs," adding, "The won, classified as a risk currency, is likely to show weakness."
Wi Jae-hyeon, an economist at NH Futures, noted, "The exchange rate is expected to rise to around 1,470 won due to the influence of Trump's mutual tariffs," adding, "The yuan is showing significant weakness, and the won-dollar exchange rate, which is strongly linked to the yuan, will also face upward pressure during the day."