(3rd LD) Seoul to devise support measures for local industries, says 'regrets' U.S. reciprocal tariff plans

(ATTN: ADDS byline, more info in last 4 paras)
By Kim Na-young

SEOUL, April 3 (Yonhap) -- The government will "swiftly" devise support measures to prevent the potential fallout on local industries from the U.S. administration's plan to slap 26 percent reciprocal tariffs on South Korea, the industry minister said Thursday, expressing "regret" over Washington's latest move.

"We regret that the U.S. tariff measures, which have a significant impact on the global trade environment, have become a reality," Industry Minister Ahn Duk-geun said in an emergency meeting with officials from various Korean industries, economic organizations and research institutes held to discuss a response strategy to new U.S. duties.

Ahn said the government will "swiftly" devise support measures for industries likely to suffer damage from U.S. tariffs and push for ministerial-level talks with Washington for "active" negotiations on the matter.

"The government seriously views the possible negative impact the U.S. tariffs could have on South Korea's exports to the U.S. as well as the global trade market," he added.

Earlier in the day, U.S. President Donald Trump announced plans to impose a 10 percent "baseline" tariff on imports from all foreign countries, as well as "reciprocal" tariffs, including 25 percent duties for South Korea.

Washington later revised the country-specific rate for Korea to 26 percent.

Seoul's industry ministry explained the reciprocal tariff rate includes the baseline 10 percent duties.

The baseline and reciprocal tariffs will go into effect at 12:01 a.m. Saturday (U.S. time) and 12:01 a.m. next Wednesday, respectively.

Some goods are not subject to reciprocal tariffs, including steel, aluminum, automobiles and key auto parts -- the targets of the already announced or enforced industry-specific tariffs, according to the White House.

Under Washington's scheme, reciprocal tariffs for South Korea have been set at a lower range than China, Vietnam and Taiwan, which will face 34 percent, 46 percent and 32 percent duties, respectively, but at a higher range than the respective 24 percent, 20 percent and 10 percent for Japan, the European Union and Britain.

After the emergency meeting, Deputy Trade Minister Park Jong-won told reporters the government will work to find a "mutually beneficial" solution for both Seoul and Washington regarding the tariff issue.

When asked if the reciprocal tariffs could lead to renegotiation of the Korea-U.S. Free Trade Agreement (FTA), Park said it was "too early" to talk about such topics, adding the U.S. administration has not yet mentioned the renegotiation of the bilateral trade pact.

Some experts have raised skepticism over the effectiveness of the Korea-U.S. FTA, as South Korea became subject to a relatively high tariff despite its free trade deal with the U.S.

"The FTA does have meaning in that South Korea will face lower tariffs compared to Japan considering the reciprocal duties will be added to the existing duties," Heo Yoon, chairman of the National Trade Negotiation Advisory Committee, explained. Japan does not have a bilateral FTA with the U.S.

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