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Acting South Korean President Han Duck-soo vowed Thursday to deploy sweeping support for industries reeling from what he termed a "global tariff war" initiated by the United States, as Washington imposed a 25% tariff on South Korean exports. The move, he warned, threatens to shake the country's economic stability and demands an all-out response.

Han delivered the urgent message during a high-stakes government meeting of a newly formed task force dedicated to countering the economic blow inflicted by U.S. trade measures. "With the specter of a full-scale global tariff war looming, the government must harness every tool at its disposal to navigate this trade crisis," Han declared, as reported by Yonhap News Agency.

US Tariff Shockwaves Hit South Korea

The tariffs, enacted Wednesday by the administration of former U.S. President Donald Trump, come as part of a sweeping effort to recalibrate global trade imbalances. According to the Office of the U.S. Trade Representative (USTR), the tariffs were set based on each country’s trade surplus with the U.S., triggering broad economic consequences worldwide.

For South Korea, the numbers are stark. The nation exported $131.5 billion worth of goods to the U.S. in 2024 while importing just $65.5 billion in American goods—leaving a trade surplus of 50%. That surplus calculation led to an effective tariff rate of 50%, though the U.S. ultimately levied a 25% duty on South Korean goods. Other nations received varying tariffs, with some facing 10% duties based on their effective trade surpluses.

South Korea Prepares Countermeasures

With key industries such as automobile manufacturing, steel production, and consumer electronics at risk, South Korean policymakers are scrambling to soften the economic fallout. Officials are exploring a range of retaliatory measures, industry-specific subsidies, and diplomatic negotiations to mitigate the tariffs' impact.

Market analysts caution that the tariffs could exacerbate supply chain disruptions and inflate costs for South Korean companies reliant on American markets. The government is expected to unveil a comprehensive relief package aimed at shielding domestic manufacturers from potential losses and ensuring their competitiveness on the global stage.

The Battle Over Global Trade Continues

As tensions between major economies escalate, South Korea's response to the tariff crisis will be closely watched. The government's next steps could shape not only the nation's trade policy but also its broader economic strategy in an increasingly protectionist world.