Washington, April 3
US President Donald Trump's announcement on "reciprocal" tariffs appears to have put South Korea deeper into a soul-searching mode over its growing reliance on the United States for trade, as the protectionist move further jeopardised the fate of a bilateral free trade agreement (FTA).
Trump announced a 10 percent "baseline" tariff on imports from all trading partners and "reciprocal" tariffs, including 26 percent duties for South Korea -- a culmination of his drive to curtail America's trade deficits, boost revenue, attract foreign investments and strengthen domestic manufacturing.
The baseline and reciprocal tariffs are set to go into effect Saturday and next Wednesday, respectively, as Trump has repeated his vow to rectify what he called "unfair" foreign trade practices that have "ripped off" America for too long, reports news agency.
For South Korea's export-reliant economy, new U.S. duties, including planned 25 percent tariffs on imported cars and parts, are raising the nettlesome questions about how to rebalance the trade relationship with the United States potentially under a new deal and avoid unforeseen consequences of economic interdependence.
The tariff announcement also added to uncertainties over the future of the increasingly multifaceted South Korea-U.S. relationship at a time when Seoul has been in a period of political flux caused by President Yoon Suk Yeol's short-lived martial law imposition and his impeachment in December.