Seoul: South Korea's pharmaceutical sector is urging the government to provide crucial support in response to potential risks posed by the United States' aggressive tariff strategies.

According to Yonhap News Agency, a local think tank, the Korea Institute for Industrial Economics and Trade (KIET), has highlighted the necessity for government intervention following U.S. President Donald Trump's announcement of possible tariffs of up to 200 percent on foreign-made pharmaceuticals.

The KIET report warns that if the U.S. implements these tariffs, it could severely impact the profit margins and price competitiveness of South Korean firms exporting pharmaceuticals. "The government needs to come up with practical support measures, such as subsidies for customs duties or logistics costs, to support affected firms operating in the U.S. market," the report emphasized.

The United States is a significant market for South Korean pharmaceuticals, accounting for nearly 20 percent of its exports last year. Conversely, South Korea represents only 2 percent of the U.S.'s drug imports, underscoring the potential impact of the proposed tariffs on South Korean exporters.

The think tank also stressed the importance of strategic partnerships between the two nations, referencing South Korea's pivotal role during the COVID-19 pandemic as a major contract manufacturer of vaccines. In addition, the KIET called for improvements in domestic approval standards for new medicines, addressing concerns from the Trump administration regarding non-tariff barriers that hamper the entry of foreign drugs into the South Korean market.