S. Korean firms wary as Trump floats global tariffs

Feb. 22 (Asia Today) -- South Korea's industrial sector said there is no immediate change in tariff rates but warned that uncertainty has grown after U.S. President Donald Trump signaled plans to impose new global tariffs.

Trump said Friday he would raise the proposed "global tariff" rate from 10% to 15% following a U.S. Supreme Court ruling that struck down his earlier reciprocal tariffs. The 15% duties previously applied to South Korea are expected to reappear under the new global tariff framework.

Industry officials said item-specific tariffs on automobiles, steel and semiconductors have not been directly addressed in the latest announcement, leaving companies cautious about possible next steps.

Major exporters are closely monitoring developments as Washington has yet to finalize detailed tariff guidelines.

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Semiconductors, one of South Korea's top export items, are currently subject to product-specific tariff discussions but remain duty-free for now. However, companies have not ruled out the possibility that Washington could soon put semiconductor tariffs on the negotiating table or raise rates to offset revenue lost from the invalidated reciprocal tariffs.

SK Group Chairman Chey Tae-won said after attending the U.S. Trans-Pacific Dialogue that he would review the court ruling before commenting further, reflecting the cautious stance of corporate leaders.

Automobile and steel tariffs are expected to remain in place regardless of the court decision. Automobiles and auto parts currently face a 15% tariff, while steel and aluminum were hit with a 50% tariff last year. Analysts said additional increases in those sectors appear unlikely in the near term.

For food, cosmetics, home appliances and chemical products, a 15% global tariff would largely mirror the current reciprocal tariff level. If the rate were set at 10% instead, exporters could see a modest reduction compared with the existing 15% rate.

While companies say there is no immediate operational impact, executives are concerned that Trump could invoke other trade authorities to introduce new measures, further complicating trade planning.

Industry officials said businesses are preparing contingency strategies as they await clearer guidance from Washington.

-- Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260222010006449