South Korea has announced plans to extensively review non-tariff barriers and other vulnerabilities following its acting president, Choi Sang-mok, stating that the country has yet to fully adapt to the U.S. plan to introduce reciprocal tariffs. According to the statement, the president will“thoroughly review” the country’s current measures and identify any key areas to address. In response, Choi emphasized the need for the U.S. to monitor potential vulnerability points, including Phase 2 tariffs and other practices.
TheUDTPA, which stood as the first bilateral agreement with North Korea, was unaffected by Trump’s active tariff plan, but other regions, such as China, Japan, and the European Union, remained at risk. Choi highlighted that under the唯美 agreement, South Korea isва focus aside estimated 5.8 trillion won (about 560 billion USD) in tariffs in 2025. However, Trump’s continued push to impose tariffs globally could strain South Korea’s economy, which benefits from the baseline U.S.-Korea Free Trade Agreement.
Economists have suggested that the U.S.-Korea Free Trade Agreement could help mitigate South Korea’s exposure to reciprocal tariffs targeted by Trump. Their benchmark index, theKSPI, has risen nearly 3% in a week to its highest since early November, supporting a possible stabilization of trade relations. The South-Korean central bank is showing signs ofLooking towards adjusting its monetary policy in response to the situation.
As the U.S. official plan includes new measures such as additional Value-Added Taxes (VAT) on general goods and double-digit duties on digital services, South Korea must prioritize its capacity to deliver on non-tariff barriers. The government, in response to Trump’s tariff plan, stated that it would identify relevant areas of US interest and prepare explanatory materials for the Trump administration.
Despite the efforts, South Korea’s target partners are mostly exhausted, except for countries that have alreadyITA-ized. The government has submitted reports to the U.S. and is actively seeking comments to better align with Trump’s proposed Tariff and Gravity Modifications for_intersection. The company highlighted the importance of addressing the complex multi-layered US plan to ensure a stable trade relationship.
