SEOUL, February 14 (AJP) - Acting President Choi Sang-mok said Friday that U.S. plans for reciprocal tariffs would likely have limited impact on the Korean economy due to existing free trade agreements, but warned that non-tariff barriers require close monitoring.
The remark follows U.S. President Donald Trump's signing of a memorandum on reciprocal trade and tariffs that would examine not only tariffs but also non-tariff barriers and exchange rates of trading partners.
The finance ministry said the current average tariff rate on U.S. imports is 0.79 percent as of last year, and it's expected to be even lower this year according to the annual concession schedule, countering foreign media reports citing South Korea's tariff rate at 13.6 percent.
Choi directed relevant ministries to form a task force to examine potential vulnerabilities and prepare explanatory materials for the U.S., particularly regarding non-tariff barriers including value-added tax and digital service tax.
"While the impact of reciprocal tariffs may not be significant due to the Korea-U.S. Free Trade Agreement, we need to closely monitor the situation as the U.S. has indicated it will evaluate non-tariff barriers," Choi said during a policy meeting in Seoul.
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