Seoul: The South Korean government Wednesday reaffirmed the country’s average tariff rate on US imports stands at less than 1 per cent under its bilateral free trade agreement (FTA) with the United States, with the rate scheduled to drop further this year.
Seoul said its average tariff rate on goods imported from the U.S. came to 0.79 per cent last year, stressing that the rate is further lowered when considering refunds, reports Yonhap news agency.
Its reaffirmation came after US President Donald Trump claimed Seoul’s average tariff is four times higher than that of the US, arguing the US is being mistreated by both “friend and foe.”
An official from Seoul’s Ministry of Trade, Industry and Energy said Trump’s argument is “not true,” adding that the government plans to communicate with the U.S. on the matter through various channels, including the U.S. Embassy here.
“Trump seems to be referring to South Korea’s tariff on its most-favoured nations (MFNs), which is at 13.4 percent,” the official said, which he said is approximately four times the 3.3 percent tariff the U.S. imposes on its MFNs.
However, most U.S. exports to South Korea are currently exempt from tariffs under the Korea-U.S. FTA, the official explained.
The average tariff rate for U.S. goods to Seoul, which stood at 0.79 percent in 2024, is scheduled to drop further this year under a reduction plan stipulated in the Korea-U.S. FTA, according to the ministry.
“We will explain that South Korea imposes almost zero tariffs on U.S. goods to dispel any misunderstanding by communicating with Washington through various channels, including our embassy there and recently launched working-level consultative bodies,” it said.
Experts said Trump’s remark may have been aimed at increasing the U.S.’ bargaining power in talks with South Korea over tariffs and other issues, including defence cost-sharing.
“I think Trump may have tried to emphasize that South Korea is posting ‘unfairly’ large trade surplus with the U.S. and that he plans to correct it,” said Lee Tae-kyu, head of the global risk assessment team at the Federation of Korean Industries.
Lee noted that Trump’s remark raises concerns that the U.S. may impose reciprocal tariffs on South Korea in April.
IANS
