South Korea’s Response to U.S. Tariffs: Seeking Negotiations, Not Retaliation
In a recent exclusive interview with CNN, South Korea's acting president, Han Duck-soo, confirmed that the country will not follow China’s approach of retaliating against the U.S. tariffs imposed in the ongoing trade dispute.
Instead, South Korea plans to negotiate with President Donald Trump directly to reach a deal.
The trade dispute between the U.S. and its trading partners has escalated, with South Korea facing a significant challenge as it now grapples with a 25% tariff on its goods under Trump’s global tariff policy. This move could potentially harm South Korea’s export-driven economy, as major brands like Samsung, LG, and Hyundai, which are popular in the U.S., would see a rise in their costs.
However, President Han emphasized South Korea’s stance on negotiations, highlighting the “very strong alliance” between South Korea and the U.S. He made it clear that the country would not team up with other nations, such as Japan or China, to oppose these tariffs. Han pointed out that such retaliatory measures would likely not benefit South Korea and would not improve the situation significantly.
China’s Response vs South Korea’s Approach
While China has been outspoken in its opposition to Trump’s trade policies, even condemning the latest tariff measures as “mistakes upon mistakes,” South Korea remains focused on diplomatic negotiations. Han’s remarks came after China reiterated its commitment to “fight to the end,” further fueling the global trade tensions. In contrast, South Korea’s approach leans more toward finding a resolution through talks rather than escalating tensions.
The acting president, who stepped into office after the political crisis involving his predecessor, noted that he had a call with President Trump just hours after the CNN interview. This highlights the ongoing efforts by South Korea to engage with the U.S. leadership for a constructive discussion.
The Impact of Tariffs on South Korea’s Economy
South Korea faces additional challenges due to the steel and aluminum tariffs imposed by the U.S. last month. As the fourth-largest exporter of steel to the U.S., this tariff hits the country’s economy hard. Additionally, a separate 25% tariff on auto imports affects South Korea’s significant automotive sector, which excels in car manufacturing.
As South Korea heads into an uncertain election season, these tariffs add another layer of complexity to an already fragile political and economic landscape. Despite these pressures, President Han remains optimistic, stating that a resolution between the two nations could be reached before factories in South Korea begin to feel the full impact.
Looking Forward
While Han acknowledged the toll these tariffs would take on South Korean businesses, he expressed hope that a solution would emerge before significant economic damage occurs. He recognized that solving such issues wouldn’t be immediate but emphasized that South Korea’s relationship with the U.S. could still result in a beneficial outcome.
As South Korea navigates its domestic and international challenges, it continues to seek a diplomatic resolution with the U.S., highlighting the nation’s preference for strategic negotiations over retaliatory actions that could further harm its economy.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
