Seoul: The South Korean market could face heightened volatility for a longer-than-expected period due to the Donald Trump administration’s sweeping tariff policy, the central bank said Monday, calling for prompt implementation of market stabilization measures when necessary. Bank of Korea (BOK) Deputy Gov. Ryoo Sang-dai made the assessment during an emergency task force meeting meant to review market conditions after Trump’s tariff measures have affected the stock and foreign exchange markets at home and abroad.

According to Yonhap News Agency, Ryoo emphasized the high uncertainties surrounding the U.S.’ path regarding its tariff policies, noting that such a situation may be prolonged longer than anticipated. He highlighted the importance of closely monitoring the financial and foreign exchange markets through a 24-hour surveillance system and promptly implementing market stabilization measures when necessary.

Trump has vowed to impose “reciprocal” tariffs on imports from most of the world, including 25 percent duties on South Korean goods, which are set to take effect on Wednesday (U.S. time). Additionally, a 10 percent “baseline” tariff on foreign imports was implemented starting Saturday.

Ryoo and other officials remarked that the recent tariff scheme was “strong,” and the move is feared to ignite a global trade dispute, according to the BOK. The impact of Trump’s tariff policy was evident in the local stock market on Monday, with the benchmark Korea Composite Stock Price Index (KOSPI) sinking more than 4 percent as of 11:30 a.m.

Moreover, the South Korean currency traded markedly lower against the U.S. dollar, nearing the 1,470 won mark, a level unseen in about 16 years since 2009.