[SEOUL] A top South Korean trade official said the government is reviewing multiple packages to present to the Trump administration as it seeks to reduce a trade surplus with the US in a bid to negotiate a lower tariff rate.
Embarking on a two-day trip to Washington, Trade Minister Cheong Inkyo said on Tuesday (Apr 8) that South Korea will seek to increase imports from the US, citing liquefied natural gas as a potential shipment. US President Donald Trump has said that any agreements would need to eliminate America’s bilateral trade deficit with a given country.
“We need to adjust the US trade balance, which is a surplus from our perspective, to reduce US tariffs,” Cheong told reporters at Incheon airport. “It is difficult to reduce exports, so we need to increase imports.”
South Korea, a key US ally and export powerhouse in Asia, is among the nations most vulnerable to protectionist policies as its economy relies heavily on earnings from abroad. South Korea recorded a surplus of US$55.7 billion with the US in 2024, customs office data show.
South Korea was slapped with a 25 per cent levy, among the highest duties to be imposed on a US ally, last week. “We have already expressed our regret about this, and this time, too, we will raise the fact that the US calculated such a high tariff rate for a country that has been implementing the Korea-US FTA for 12 years,” Cheong said.
The fresh duties were unveiled just as Trump’s 25 per cent tariff on US auto imports took effect, adding to 25 per cent steel and aluminium tariffs introduced last month – all are key exports for Asia’s fourth-largest economy.
“This is something that we will definitely discuss during this US visit,” Cheong said as he vowed to gather intel on what the US administration is planning on other sectors, including the chip industry.
While another US ally, Japan, appears set to begin trade talks with Washington, South Korea’s ability to deal with Trump’s sweeping tariff campaign remains hindered as the country prepares to elect a new leader in the coming weeks. Former president Yoon Suk-yeol was removed from office last week for his shock martial law decree in December, leaving the export-reliant economy without a clear policy direction as Trump unleashed a barrage of tariffs.
Seoul plans to unveil a 10 trillion won (S$9.2 billion) extra budget plan next week to shore up the slowing economy, with a third of the total amount set to be earmarked for dealing with trade risks and boosting the country’s artificial intelligence capabilities. BLOOMBERG
