South Korea's acting President Han Duck-soo declared a full mobilization of government resources Thursday to counter newly announced U.S. tariffs, warning of intensifying global trade tensions. The emergency response comes as Washington moves to impose a 25% tariff on Korean imports alongside broader 10% global trade levies proposed by former U.S. President Donald Trump.
"We must deploy every capability to navigate this trade crisis," Han urged during an economic security strategy meeting attended by key ministers. The leader specifically highlighted risks to Korea's automotive sector – responsible for 12% of national exports – emphasizing urgent need for industry protection measures.
Officials have been directed to analyze the tariffs' technical specifications and financial impacts within 72 hours, while accelerating bilateral negotiations with U.S. trade representatives. The government plans to activate export insurance programs and tax incentives to shield affected businesses from immediate shocks.
This escalation follows years of simmering friction since the 2018 renegotiation of the KORUS trade agreement. Analysts suggest the tariffs could reduce South Korea's GDP growth by 0.3 percentage points if fully implemented, with automakers like Hyundai and Kia facing $1.2 billion in annual cost increases.
