South Korea on the Brink: Navigating the Impacts of Trump's Tariffs

South Korea braces for impact as U.S. President Donald Trump enacts a 25% tariff on imports. Finance Minister Choi Sang-mok and other officials develop support measures for affected sectors, especially the auto industry. Trade Minister Cheong In-kyo plans a strategic visit to the U.S. aiming for tariff exemptions.

South Korea is urgently preparing to counteract the effects of incoming U.S. tariffs, with a particular focus on the auto industry. Effective this week, President Donald Trump's 25% tariff on imports will challenge South Korean exports, including automobiles, which are a significant part of the trade relationship.

Finance Minister Choi Sang-mok announced the government's commitment to introducing support measures for the most affected sectors amid these changes. Meanwhile, Trade Minister Cheong In-kyo's forthcoming visit to the United States seeks to negotiate potential exemptions and mitigate economic impacts. This visit marks the fifth senior-level engagement with U.S. officials since Trump's administration began imposing strict trade policies.

In response to the destabilization of markets, as evidenced by a downturn in the KOSPI stock index, South Korea's financial regulators are mobilizing a 100 trillion won stabilization fund. Companies and state institutions are also being encouraged to provide liquidity support to exporting businesses facing challenges from the new tariffs.

(With inputs from agencies.)