South Korea Gears Up to Tackle US Tariff Impact: Strategic Measures Underway

South Korea's finance ministry is preparing support measures to counter the impact of the U.S. 25% tariff on imports from the country. The focus is on the auto sector and negotiating tariff reductions. Financial regulators also aim to support companies affected by the tariffs and stabilize financial markets.

South Korea's finance ministry announced on Monday its plans to address the repercussions of a looming 25% tariff on imports from the country by the United States, a policy initiated by President Donald Trump. Finance Minister Choi Sang-mok highlighted the urgency of analyzing its macroeconomic impact and preparing responsive support for affected sectors, especially the auto industry.

The tariff, part of a broader policy announced on April 2, targets several global trading partners, with South Korea facing particular challenges due to the significance of the U.S. market for its exports. Last year, South Korea exported goods worth a record $127.8 billion to the United States, with automobiles comprising 27% of this total.

Further strategic efforts include high-level discussions between South Korean and U.S. trade officials scheduled for this week, aiming to negotiate tariff reductions. Meanwhile, South Korea's financial regulator is readying liquidity support for exporters affected by the tariffs, amid volatile market conditions and a slump in local stock indexes.

(With inputs from agencies.)