South Korea’s Trade Minister Cheong In-kyo has asked his U.S. counterpart Jamieson Greer to exempt the country from reciprocal tariffs if they go into effect on April 2. Trump accused South Korea of imposing “4x higher tariffs” than the United States. Trade Minister Cheong In-kyo met U.S. Trade Representative Jamieson Greer during his visit to Washington this week and emphasized that South Korea should not receive unfavorable treatment. South Korea’s acting president, Choi Sang-mok, ordered the government to communicate more actively with the U.S. administration to resolve any misunderstanding over tariffs. He had earlier said Trump’s America-first policies targeted Seoul. South Korea seeks U.S. tariff exemption Earlier this month, President Trump singled out South Korea for allegedly applying tariffs up to four times higher than those of the United States. However, the South Korean government rebutted Trump’s claim that Korea imposed “4x higher tariffs” than the United States. South Korea’s Trade Ministry stressed that “facts differed” and that under the 2007 FTA, most goods traded duty-free with an average tariff on U.S. imports of just 0.79%, dropping to 0% for industrial products. According to a statement released by the Korean Trade Ministry, South Korea’ s effective tariff rate on U.S. imports stood at 0.79% as the two countries have a free trade pact. Reportedly, what was 4x higher was Korea’s general WTO (most-favored-nation) tariff rate (13.4%) compared to America’s (3.3%). Trump’s claim overlooked that South Korea has FTAs with most trading nations, meaning that the higher general rate is rarely applied in practice. “Both sides shared the view that they will continue discussions to seek constructive and mutually beneficial progress on tariff and non-tariff measures in the future.” ~ South Korea Trade Ministry The Trade Ministry explained that South Korea imposed “virtually no tariffs on the US” and dispelled any misunderstandings through various channels, including the local embassy, recently established working-level consultative bodies, and high-level contacts, such as the Trade Minister’s recent US visit. Lutnick says tariffs on vehicles from all countries are fair On March 14, U.S. Commerce Secretary Howard Lutnick hinted that next month’s U.S. tariffs could be imposed on cars from all countries, including Korea, Japan and Germany. He added that this was fair, saying, “If you’re going to tariff cars from anywhere, it’s got to be tariffing cars from everywhere.” Last week, the Trump administration delayed new tariffs on automobiles imported from Mexico and Canada for one month. However, during his visit, Trade Minister Jeong also met with Senator Andy Kim (D-NJ)–the first Korean American to serve in the U.S. Senate–to discuss ways to deepen bilateral cooperation. He also engaged with experts from the Hudson Institute and law firms to gather insights on the Trump administration’s trade policies and potential strategies for strengthening industrial collaboration. Jeong further held talks with South Korean steel industry representatives operating in the U.S. to discuss response strategies and ways to minimize the impact of the 25% tariffs on steel and aluminum that took effect on March 12. Jeong said the meetings he attended during his visit were “a crucial first step.” He added that both countries will jointly build on the trust established through these discussions to ensure that Korea’s interests are fully reflected in upcoming trade decisions, prioritizing the maximization of national interests. Korea’s Industry Minister Ahn Duk-Geun also convened a meeting with business leaders On March 13 and discussed ways to beef up their joint response to U.S. tariffs. He urged companies to actively reach out to U.S. stakeholders and share details of their discussions with the government in real time. The Ministry of Trade also said in a statement that, based on the successful meetings, South Korea’s government will develop a plan to counter unfair imports. Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now
