A Cheong Wa Dae official said South Korea will carefully assess the impact of the Trump administration's decision to raise tariffs on EU autos and trucks to 25% and respond accordingly. The move has drawn attention in Seoul due to South Korea's similar tariff deal with the US. The government plans to communicate closely with Washington to maintain stable trade relations.
U.S. President Donald Trump announced on Friday (local time) that his administration will increase tariffs on cars and trucks from the European Union to 25 percent next week, up from the 15 percent rate agreed under last year's tariff deal. The prior rate had been 27.5 percent. Trump cited the EU's failure to comply with the trade deal, though some observers view it as payback for the bloc's refusal to support U.S. efforts to secure the Strait of Hormuz by sending warships.
South Korea has a similar tariff deal with the U.S., under which rates were reduced from 25 percent to 15 percent. "We will monitor related developments, analyze potential impact on us and respond accordingly," a Cheong Wa Dae official said by phone. "The government is closely and frequently communicating with the U.S. side to discuss ways to implement our tariff agreement with the U.S. and we will continue efforts to ensure that South Korea-U.S. trade relations are managed in a stable manner," the official added.
Trump has also singled out South Korea as one of the countries "not being helpful" to the U.S. on the strait, despite U.S. troop presence on the Korean Peninsula. The Cheong Wa Dae official declined further comment on potential impacts on Korean products, stating: "We will respond based on the principles of maintaining the balance of benefits under the existing South Korea-U.S. agreement and ensuring treatment no less favorable than that given to other countries."
