The acting president of South Korea announced on Friday ( Feb 14 ) that it would thoroughly review non-tariff barriers and other vulnerabilities in response to a US plan to introduce reciprocal tariffs.
Donald Trump, the president’s economy group, was given the task of creating plans for mutual tariffs on all nations that would be subject to US import taxes, including South Korea, China, Japan, and the European Union.
” The effect of the bilateral tax measures may not be large on our business, as tax rates are low due to the Korea-US Free Trade Agreement”, said Choi Sang-mok, the finance secretary who is serving as acting president.
” But, given that the US said it would likewise assess non-tariff barriers including value-added fees and fees on digital companies, it is necessary to monitor the situation”.
Among the top 15 US trading lovers, South Korea’s tax rates are the second-highest after India, but almost all were eliminated by the free trade agreement initially signed in 2007 and revised in 2018 during Trump’s first name.
The standard KOSPI increased almost 3 % this week, the highest level since early November, according to economics, and the pact may help reduce the nation’s exposure to mutual tariffs threatened by Trump.
Choi predicted that the government may prepare descriptive documents for the Trump administration regarding South Korea’s non-tariff obstacles and identify key places of US curiosity in response to Trump’s tax strategy.
The finance ministry said in a separate speech that South Korea’s common tax rate on imported goods from the US was 0.79 per cent as of 2024, and it is anticipated to be lower this year. There are no duties on manufactured goods, according to the finance department.