Latest news with #Korea-U.S.FreeTradeAgreement
Yahoo
3 days ago
- Business
- Yahoo
South Korea appoints ex-trade chief Yeo Han-koo as new trade minister
SEOUL (Reuters) -South Korea appointed former chief trade envoy Yeo Han-koo as its top trade negotiator, the president's office said on Tuesday, as Asia's fourth largest economy prepares for negotiations with Washington to reduce the tariffs. The U.S. imposed 25% levies on South Korea on April 2, one of the highest tariffs for a U.S. ally, though they have been suspended until early July. Cutting tariffs is a top policy priority for South Korea's new President Lee Jae-myung after a leadership vacuum in recent months helped delay talks between Seoul and Washington. The president also appointed statistics agency chief Lee Hyoung-il as first vice finance minister to lead the ministry until a finance minister is formally appointed, Lee's spokesperson Kang Yu-jung said. Sectoral tariffs have hurt South Korea's key industries including cars, aluminium and steel. Yeo was trade chief between August 2021 and early 2022 during left-leaning President Moon Jae-in's administration and was involved in Korea-U.S. talks under the first Trump administration. While serving as commercial attache at the Korean Embassy in Washington, he was involved in amendment negotiations of the Korea-U.S. Free Trade Agreement and Section 232 steel negotiations in 2017. For the past two years Yeo has been a senior fellow at the Peterson Institute for International Economics.
Yahoo
21-02-2025
- Business
- Yahoo
South Korea asks U.S. for exemption from Trump's proposed tariffs
SEOUL, Feb. 21 (UPI) -- South Korea has asked the administration of U.S. President Donald Trump to exclude the country from a proposed slate of punishing tariffs on trade partners, citing an existing free trade agreement and low import duties on American products, Seoul's Trade Ministry said Friday. Deputy Trade Minister Park Jong-won made the request as he met with officials from the White House, the Department of Commerce and the Office of the U.S. Trade Representative during a visit to Washington this week, the ministry said. Park highlighted large-scale investments by South Korean companies in the United States and emphasized that tariffs on almost all items between the two countries have already been eliminated under an existing Korea-U.S. Free Trade Agreement. He requested that South Korea not be included in tariffs on steel and aluminum as well as reciprocal tariffs on other imported goods, the ministry said. South Korean firms committed to $21.5 billion of investments in American projects in 2023, making the country the top global investor in the United States for the first time ever, according to U.N. trade data analyzed by the Financial Times. The surge in investment came as the administration of former President Joe Biden moved to sideline China from its supply chain. Biden's CHIPS Act offered billions of dollars in subsidies and tax breaks to bring semiconductor and clean energy manufacturing back to the United States, drawing in South Korean companies. Major projects have included Samsung's $17 semiconductor factory in Texas, SK Innovation and Ford's $11 billion electric vehicle and battery plants in Kentucky and Tennessee and Hyundai's $7.6 billion EV plant in Georgia. South Korea's trade surplus with the United States reached a record-high $55.7 billion last year. Seoul's Finance Ministry said last week that the average tariff rate on imports from the United States stood at just 0.79% as of 2024 and is expected to drop further this year as part of an annual reduction plan. During his visit to Washington, Park proposed to hold high-level consultations soon to discuss major issues and ways to expand cooperation between the two countries. The ministry added that it would work to minimize the damage from protectionist U.S. trade policies on local industries. South Korea's top economic think tank recently lowered its 2025 growth forecast from a projection made in November, citing concerns over the impacts of Trump's proposed tariffs and other trade measures. The state-run Korea Development Institute slashed the country's growth outlook from 2.0% to 1.6% due to still-sluggish domestic demand and slowing export growth "Following President Trump's election, trade conditions are expected to worsen amid strengthening protectionism, while uncertainty in trade policy is surging," the KDI said in a quarterly report. Last week, Trump signed an order to impose 25% tariffs on steel and aluminum imports and said he will likely unveil automobile, pharmaceutical and semiconductor duties as early as April.
Yahoo
14-02-2025
- Business
- Yahoo
South Korea to review non-tariff barriers to respond to US reciprocal tariff plan
SEOUL (Reuters) - South Korea will thoroughly review non-tariff barriers and other vulnerabilities to respond to a U.S. plan to introduce reciprocal tariffs, the country's acting president said on Friday. U.S. President Donald Trump tasked his economics team on Thursday with devising plans for reciprocal tariffs on every country taxing U.S. imports with potential targets including South Korea, China, Japan and the European Union. "The impact of the reciprocal tariff measures may not be huge on our economy, as tariff rates are low due to the Korea-U.S. Free Trade Agreement," said Choi Sang-mok, the finance minister who is serving as acting president. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. "However, given that the U.S. said it would also assess non-tariff barriers including value-added taxes and taxes on digital services, it is necessary to monitor the situation." Among the top 15 U.S. trading partners, South Korea's tariff rates are the second-highest after India, but nearly all were eliminated by the free trade pact first signed in 2007 and revised in 2018 during Trump's first term. Economists have said the pact could help mitigate the country's exposure to reciprocal tariffs threatened by Trump, with the benchmark KOSPI rising nearly 3% this week to the highest level since early November. Choi said the government would respond to Trump's tariff plan by identifying key areas of U.S. interest and preparing explanatory material regarding South Korea's non-tariff barriers for the Trump administration. South Korea's average tariff rate on imports from the United States stood at 0.79% as of 2024, and is expected to be lower this year, with no duties on manufactured goods, the finance ministry said in a separate statement.
Reuters
14-02-2025
- Business
- Reuters
South Korea to review non-tariff barriers to respond to US reciprocal tariff plan
SEOUL, Feb 14 (Reuters) - South Korea will thoroughly review non-tariff barriers and other vulnerabilities to respond to a U.S. plan to introduce reciprocal tariffs, the country's acting president said on Friday. U.S. President Donald Trump tasked his economics team on Thursday with devising plans for reciprocal tariffs on every country taxing U.S. imports with potential targets including South Korea, China, Japan and the European Union. "The impact of the reciprocal tariff measures may not be huge on our economy, as tariff rates are low due to the Korea-U.S. Free Trade Agreement," said Choi Sang-mok, the finance minister who is serving as acting president. "However, given that the U.S. said it would also assess non-tariff barriers including value-added taxes and taxes on digital services, it is necessary to monitor the situation." Among the top 15 U.S. trading partners, South Korea's tariff rates are the second-highest after India, but nearly all were eliminated by the free trade pact first signed in 2007 and revised in 2018 during Trump's first term. Economists have said the pact could help mitigate the country's exposure to reciprocal tariffs threatened by Trump, with the benchmark KOSPI (.KS11), opens new tab rising nearly 3% this week to the highest level since early November. Choi said the government would respond to Trump's tariff plan by identifying key areas of U.S. interest and preparing explanatory material regarding South Korea's non-tariff barriers for the Trump administration. South Korea's average tariff rate on imports from the United States stood at 0.79% as of 2024, and is expected to be lower this year, with no duties on manufactured goods, the finance ministry said in a separate statement.
