"[...]According to the (SK) trade ministry, Washington and Seoul have eliminated tariffs on most goods, under the Korea-U.S. Free Trade Agreement that took effect in 2012,
making its average tariff rate on imports from the U.S. stand at point-seven-nine percent in 2024.
This rate is set to drop further this year in accordance with an annual tariff reduction plan stipulated in the agreement.
For reference, the ministry added that the tariff rate on imported manufactured goods from the U.S. is zero-percent.
In terms of what Trump said,
the ministry assumed he would have been referring to Korea's most favored nation treatment tariff which stood at 13-point-4-percent in 2024, that is four times that of the U.S.'s 3-point-3-percent.
But this rate, applies to WTO member countries without bilateral agreements, and thus is not applied to goods imported from the U.S.
Amid such a potential tug of war on tariff schemes, Trump said he aims to "resurrect" America's shipbuilding industry, planning to offer special tax incentives to bring the industry back to the U.S., while also putting pressure on South Korea to participate in a natural gas pipeline project in Alaska.
"My administration is also working on a gigantic natural gas pipeline in Alaska, among the largest in the world, where Japan, South Korea and other nations want to be our partner, with investments of trillions of dollars each."
One expert says, however, that taking part in such projects would not be able to fully prevent Trump's reciprocal tariff scheme,
and neither would the FTA be able to do it.
"Trump threatened to impose a 25% tariff on Colombia and actually did on Canada and Mexico. All three countries have FTAs with the U.S., so having an FTA does not necessarily mean Korea can avoid such a measure." "
....
"(South) Korea is poised to set up an advanced strategic industry fund of 50 trillion Korean won or some 34 billion U.S. dollars over the next five years.
The fund will seek to support key future industries such as batteries and chips.
Intentions to this end were shared during a related meeting earlier on this Wednesday presided over by acting President Choi Sang-mok who also underscored the importance of securing a head start amid a rapidly changing environment with proactive and bold industrial investments.
Now the aforementioned fund is expected to reach some 68 billion U.S. dollars with the support of commercial banks."
