Summary:
- Acting President Han Duck-soo says South Korea will not retaliate against Trump’s 25% tariffs, emphasizing negotiation and alliance strength.
- The country faces significant economic pressure, especially on steel and auto exports, but opts for a diplomatic, calculated approach.
- Han, a veteran economist and former ambassador to the U.S., highlights the historical risks of trade wars and calls for cooperation over conflict.
- South Korea has dispatched its trade minister to Washington in hopes of resolving the dispute before factory shutdowns occur.
News in Detail:
In a decisive break from Beijing’s defiant stance, South Korea has signaled it will not join China or other Asian economies in retaliating against the sweeping 25% tariffs imposed by U.S. President Donald Trump. Speaking to CNN in an exclusive interview on Tuesday, Acting President Han Duck-soo reaffirmed Seoul’s commitment to negotiation, cautioning against actions that could escalate global economic tensions.
“We clearly would like to negotiate,” Han said, while praising the enduring strength of the U.S.-South Korea alliance. “I don’t think fighting back will improve the situation dramatically.”
The new tariffs—part of a broader protectionist push from the Trump administration—target global steel and auto exports, directly impacting South Korea’s export-driven economy. Iconic brands like Samsung, LG, and Hyundai, which dominate U.S. consumer markets, could see rising costs and shrinking margins due to the new levies.
A Delicate Balancing Act
Han’s remarks come at a moment of acute domestic uncertainty. Elevated to acting president following a political crisis involving his predecessor, Han himself faced impeachment within weeks—before being reinstated in March. Despite this volatility, he has prioritized economic diplomacy, dispatching South Korea’s trade minister to Washington to seek relief before the tariffs cripple Korean manufacturing.
Trump’s tariffs, first aimed at steel and aluminum and now extended to automotive imports, come despite the existence of a U.S.-Korea Free Trade Agreement. South Korea is currently the fourth-largest steel exporter to the U.S., and automobiles remain a cornerstone of its industrial output.
But Han, drawing on decades of economic experience—including his role in negotiating the original U.S.-Korea trade deal—believes negotiation, not retaliation, is the right course.
“In game theory, just doing things individually may not help,” he told CNN. “We should communicate, cooperate, and work together.”
A Veteran’s Strategic Vision
Han’s background gives weight to his measured tone. A Harvard-trained economist whose dissertation explored how Korea could survive external shocks, Han has long served in key economic and diplomatic roles. His understanding of global trade dynamics and past economic crises frames his opposition to escalating conflict.
Referencing the 1930s global trade war that triggered a global recession, Han warned that protectionism can have long-lasting global consequences.
“Globalization is not dead,” Han said. “It can never be dead.”
While China has vowed to “fight to the end”, and regional leaders like Singapore’s Prime Minister Lawrence Wong warn of a “dangerous and protectionist” new world order, Han maintains cautious optimism. His approach aligns more with Japan’s leadership, which also seeks dialogue over confrontation.
Economic Stakes Are High
The stakes are enormous. South Korea’s total trade with the U.S. hit $197 billion in 2024, with exports accounting for $128 billion, led by the auto and machinery sectors. Meanwhile, the U.S. trade deficit with South Korea surged to $66 billion, heightening Trump’s focus on Seoul as a tariff target.
Factory closures, job losses, and further strain on a fragile global supply chain loom unless a compromise is reached.
Still, Han remains hopeful: “Not everything will be solved in a day,” he admitted, “but I believe we can find a resolution.”
In an increasingly fragmented global trade landscape, South Korea’s tempered and strategic response may offer a blueprint for smaller economies navigating the rough waters of great-power protectionism.
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