South Korea, Jan 14 (Blitz India Business) South Korea will set up tailored strategies for different scenarios in the wake of potential changes in the US trade policy following the inauguration of President-elect Donald Trump next week, the industry ministry said on Tuesday.
“If the United States introduces detailed trade protectionism measures, significant impacts on South Korea’s exports will be inevitable,” the Ministry of Trade, Industry and Energy said in a policy report.
“There are also concerns protectionist measures could spread among major markets in a chain reaction,” it added, reports Yonhap news agency.
The ministry said it is currently formulating strategies based on “accurate data” to counter potential moves by the Trump administration to implement protectionist measures targeting countries with trade surpluses with the US.
South Korea will also maintain a coordinated information-sharing system with major partners, including Japan, the European Union, Canada and Mexico, it added.
Trump has pledged to impose a 25 per cent tariff on all products from Mexico and Canada, as well as an additional 10 per cent tariff on goods from China.
The proposal has raised concerns among South Korean companies investing in Mexico and Canada, which rely on the U.S.-Mexico-Canada free trade agreement (FTA), known as USMCA, to access the North American market.
During a meeting with reporters, Industry Minister Ahn Duk-geun noted South Korea’s focus will be on ensuring incentives provided to South Korean firms under the Inflation Reduction Act are maintained, rather than preserving the act itself.
The ministry said it will work to expand export destinations for South Korean businesses in 2025.
As of the end of 2024, South Korea had 22 FTAs in effect, providing access to markets that jointly account for 85 percent of the global gross domestic product.
The country plans to officially implement four additional FTAs signed with the Gulf Cooperation Council (GCC), the United Arab Emirates, Guatemala and Ecuador this year, which are expected to further boost the market access ratio to over 87 per cent.
The ministry added Seoul will also accelerate trade negotiations with Malaysia, Thailand, Mongolia, Bangladesh and Serbia this year.