South Korea has said that it will use ‘all its capabilities' to overcome the trade crisis following President Donald Trump's announcement of reciprocal tariffs on the country.
Following the development, South Korea’s acting President, Han Duck-soo, ordered emergency support measures for businesses in his country that will be affected.
Trump imposed on South Korea 25% tariffs, including automobiles, according to the industry ministry.
Duck-soo wants the industry minister to analyse the content of the tariffs and actively negotiate with the US to minimise the impact.
Han said, “As the global trade war has become a reality, the government must pour all its capabilities to overcome the trade crisis.”
Trump accused South Korea and Japan of being among the worst offenders for conducting unfair trade practices against America.
South Korean finance minister, Choi Sang-mok and industry minister, Ahn Duk-geun will now embark on several meetings to discuss the tariffs’ impact on financial and foreign exchange markets.
According to news agency, Yonhap, the ministers will also look at strategies for outreach to the US and the response of government and businesses.
Analysts in Seoul said Trump’s extensive rollout of tariffs was harsher than expected, casting a cloud over the export-reliant economy.
“For the domestic economy, a significant blow will be inevitable,”; Park Sang-hyun, an economist at iM Securities, said, according to The Guardian UK.
“It is clear that major export products such as automobiles will be hit hard, and exports to the US through production bases in Vietnam will also be hit hard.”
