Seoul: South Korea will carefully assess how the Trump administration's move to raise tariffs on the European Union (EU)'s autos and trucks could affect its own trade deal with the United States and respond accordingly, a Cheong Wa Dae official said Saturday.
According to Yonhap News Agency, the comments came after U.S. President Donald Trump announced that his administration will increase tariffs on cars and trucks from the EU to 25 percent next week, up from the 15 percent rate agreed under last year's tariff deal. Prior to this agreement, the rate had been set at 27.5 percent.
The announcement is drawing attention in Seoul, as South Korea has a similar tariff deal with the U.S., under which the rate was reduced to 15 percent from 25 percent. "We will monitor related developments, analyze potential impact on us and respond accordingly," a Cheong Wa Dae official said by phone, stating the government's close watch on related developments.
The government is maintaining frequent communication with the U.S. to discuss ways to implement the tariff agreement and ensure stable South Korea-U.S. trade relations, the official added. While Trump cited the EU's non-compliance with the trade deal as justification for the tariff hike, some observers perceive the move as retaliation for the EU's refusal to support U.S. efforts to secure the Strait of Hormuz, including sending warships to escort merchant vessels through the waterway.
Trump also mentioned South Korea in relation to the strait, identifying it as one of the countries "not being helpful" to the U.S., despite the U.S. troop presence on the Korean Peninsula, which he said has helped protect the ally.
The Cheong Wa Dae official declined further comment on the U.S.-EU tariff deal's potential impact on Korean products. However, the official emphasized the government's commitment to protecting its interests under the agreement with the U.S. "We will respond based on the principles of maintaining the balance of benefits under the existing South Korea-U.S. agreement and ensuring treatment no less favorable than that given to other countries," the official stated.