South Korea’s acting President Han Duck-soo has ordered emergency support measures for industries affected by sweeping new U.S. tariffs, including a 25% tariff on Korean automobile exports. The move follows President Donald Trump’s announcement of global reciprocal tariffs, which have intensified fears of a global trade war.
Han instructed the industry minister to thoroughly analyze the U.S. tariffs and initiate negotiations with Washington to minimize their impact on South Korea’s export-driven economy. He stressed the need for a coordinated response, saying, “The government must mobilize all its capabilities to overcome this trade crisis.”
Trump directly targeted key Asian allies, South Korea and Japan, accusing them of unfair trade practices. He also imposed a 46% tariff on imports from Vietnam, a country where major South Korean companies like Samsung Electronics and LG Electronics operate key manufacturing facilities. These additional tariffs could severely disrupt supply chains and Korean exports routed through Vietnam.
Economists in Seoul warned of significant economic fallout. “Major export products such as automobiles will be hit hard,” said Park Sang-hyun of iM Securities. He added that the measures would also impact Korean firms relying on production in Vietnam.
The announcement triggered a sharp decline in South Korean markets. The KOSPI index fell as much as 2.7%, reaching a three-month low. Shares of automakers plunged to 14-month lows, while semiconductor and battery stocks also slumped, with LG Energy Solution hitting a record low.
Finance Minister Choi Sang-mok pledged to use all available tools to stabilize markets if volatility escalates. Later today, Han is set to meet with private sector leaders to coordinate responses. Seoul had previously sought tariff exemptions under its free trade agreement with the U.S., but to no avail.