South Korea not to ‘fight’ Trump’s tariffs, says acting president

South Korea will not retaliate against newly imposed US tariffs, Acting President Han Duck-soo said in an interview with the Financial Times, Report informs via The Indian Express.

Talking about the country’s “historical debt” to the United States, Han made clear that Seoul is approaching upcoming trade talks with the President Donald Trump administration in a spirit of cooperation rather than confrontation.

The remarks come at a critical juncture in US-South Korea relations, as new tariffs and ongoing global trade tensions threaten to strain the long-standing alliance between the two countries.

Han, a veteran technocrat who stepped in as acting president following the impeachment and removal of President Yoon Suk Yeol earlier this month, framed his administration’s response to Washington’s tariffs as one rooted in historical alliance and mutual benefit.

South Korea has long been regarded as one of Washington’s closest strategic allies in Asia, not only in security matters but also through extensive economic and technological cooperation.

“The role of the US was huge in making Korea what it is now,” Han said. “After the devastation of the Korean War, the United States gave us aid, technology transfer, investments, and security assurances,” which he credited with helping make South Korea “a very comfortable investment environment for foreigners.”

“Our industrial prowess and our financial development and our culture and growth and wealth are very heavily due to the help from the United States,” he added.

The Trump administration announced a 25% “reciprocal” tariff on South Korean goods earlier this month, despite the existence of a free trade agreement (FTA) between the two countries. The move took many in Seoul by surprise and raised concerns about the durability of the trade pact, which had largely eliminated tariffs on American products entering South Korea.

The new tariffs affect several of South Korea’s most globally competitive sectors. Automotive giants Hyundai and Kia have been hit by a separate 25% levy targeting foreign automakers. Meanwhile, chipmakers and pharmaceutical companies are under threat of further tariffs under a national security probe initiated by the US.

These actions come amid heightened scrutiny of South Korea’s growing trade surplus with the US, which hit a record $55 billion in 2024—up significantly from previous years as the US overtook China to become South Korea’s largest export market.

Han wants to find “solutions which are more win-win for both, rather than taking their actions as the objective against which we should fight back,” he said.

In response to the growing trade imbalance, Han indicated that Seoul is open to discussions aimed at reducing its surplus with the US. Among the measures being considered are increased purchases of American liquefied natural gas and commercial airliners.

He also mentioned expanded cooperation in sectors such as naval shipbuilding, which he said could contribute to strengthening military alliances.

Beyond tariffs, Washington has long raised concerns about non-tariff barriers in South Korea, which US officials argue put American companies at a disadvantage. These include emissions regulations that impact foreign carmakers, opaque pharmaceutical pricing systems, limited beef imports, and digital regulations that affect content providers like Netflix.

Han signaled a willingness to address these grievances in upcoming negotiations. Some industries “may suffer some problems,” he said, but broader liberalization of trade between the two countries would “increase the welfare of the Korean people.”