Hanoi: Industry Minister Ahn Duk-geun convened a meeting with South Korean companies operating in Vietnam to address concerns stemming from recent U.S. tariff proposals. Representatives from 16 South Korean companies, including major exporters such as Samsung Electronics Co. and Hyundai Motor Co., participated in the discussions.

According to Yonhap News Agency, the meeting focused on the challenges posed by the United States' reciprocal tariff policy, with Industry Minister Ahn emphasizing the importance of collaborative strategies to mitigate potential impacts. "To minimize potential damage to our companies, we will continue to communicate closely not only with the U.S. government but also with the Vietnamese government through high-level talks and intergovernmental consultation channels," Ahn stated, as per the Ministry of Trade, Industry and Energy.

The impetus for the meeting was U.S. President Donald Trump's recent proposal for a 46 percent reciprocal tariff on imports from Vietnam, sparking concern among South Korean businesses that utilize Vietnamese production lines for their exports to the U.S. Trump has suggested a temporary 90-day suspension of the tariffs, with a provisional 10 percent baseline tariff imposed on all countries until a reciprocal tariff structure is confirmed.

While the final decisions are yet to be made, the proposed 46 percent tariff rate for Vietnam remains a significant concern, particularly for South Korean firms relying on Vietnam-produced goods for export to the U.S. In 2023, Samsung Electronics alone exported products worth US$54.4 billion from its Vietnamese factories to various markets, including the U.S., representing about 14 percent of Vietnam's total exports.