US Car Tariffs Makes South Korea Be On Alert

South Korean authorities have announced that they will carefully evaluate the announcement of an increase in US tariffs on cars and trucks from the European Union and prepare a response related to the measures, an official from the office of the South Korean president said.

“We will monitor the developments, analyze the potential impact on us and respond accordingly. The government communicates closely and frequently with the US side to discuss ways to implement our customs agreement with the US, and we will continue our efforts to ensure that trade relations between South Korea and the US remain stable,” the South Korean official said.

These comments came after US President Donald Trump said on Friday that his administration would raise tariffs on cars and trucks from the EU from 15 to 25 percent next week, Yonhap reported.

This statement by Trump attracted attention in Seoul because South Korea has a similar tariff agreement with the US, according to which the rate was reduced from 25 percent to 15 percent.

While Trump cited the EU’s non-compliance with the trade agreement as the reason for the tariff hike, some observers see the move as revenge for the allies’ refusal to heed his calls to support US efforts to secure a waterway through the Strait of Hormuz.

Speaking about Hormuz, Trump singled out South Korea as one of the countries that are “unhelpful” to the US despite the allied presence of US troops on the Korean Peninsula.

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