WASHINGTON, D.C. – The US government plans to unveil country-specific reciprocal tariffs on April 2, with particular attention on nations imposing significant duties on US goods – a move that could have major implications for South Korea.
Officials in Seoul said that Korea, long scrutinized by Washington for its trade surplus with the US, could be slapped with heavier duties.
Under President Donald Trump’s previous administration, the US government renegotiated the Korea-US Free Trade Agreement (KORUS FTA), and analysts now say that the new Trump administration could bring further revisions or even a complete overhaul of the deal.
US Treasury Secretary Scott Bessent on Tuesday told Fox Business Network that Trump on April 2 would give trading partner countries a reciprocal tariff number that reflects their own rates, non-tariff trade barriers, currency practice and other factors, but could negotiate to avoid a “tariff wall.”
“For some countries, it (the number) could be quite low, for some countries, it could be quite high,” said Bessent.
He said some countries might not face tariffs because they would have already negotiated deals.
‘DIRTY 15 NATIONS’
Bessent said countries that fail to reduce their trade barriers will face steeper tariffs aimed at protecting the US economy, its workers and industries.
Much of the technical work on the expected tariffs will be led by the US Trade Representative’s office, headed by Jamieson Greer, and the Department of Commerce.
Calculating the tariff rates is complicated by Trump’s vow to reflect the impact of non-tariff barriers, including taxes and other measures that US officials argue give other countries’ firms an unfair advantage.
The treasury secretary said that the Trump administration is particularly focused on the 15% of countries that have the highest tariffs and large trading volumes with the US, which he referred to as the “Dirty 15.”
These countries also often have regulations governing domestic content or food safety that conspire to keep US products out of their markets, he said.
KOREA IN THE CROSSHAIRS?
Although he refrained from naming the countries likely to be in the Dirty 15, there is growing speculation that Korea could be one of them.
Industry officials said the prospect of Korea being included in the targeted nations is growing, given past tensions over trade.
Trump has repeatedly criticized Korea’s trade practices, claiming in a congressional address on March 4 that Korea’s average tariff rate is “four times higher” than that of the US.
While Korea’s FTA with the US eliminates tariffs on most goods, Trump’s remarks underscore his administration’s perception of an imbalance, analysts said.
White House National Economic Council Director Kevin Hassett mentioned Korea, alongside Europe and China, in a March 17 CNBC interview, while attributing the persistent US trade deficit to their non-tariff barriers.
US industry groups have also accused Korea of maintaining restrictive trade policies, citing its ban on beef imports originating from US cattle older than 30 months and stringent agricultural inspection procedures.
Korea has been making diplomatic efforts to avoid new US tariffs amid concerns that its trade surplus, which reached $55.7 billion – the ninth largest with the US – in 2024.
With trade relations at a critical juncture, analysts said Korea must now decide whether to make concessions or brace for heightened trade tensions in the months ahead.
By Sang-eun Lucia Lee and Jeong-Jin Eun
selee@hankyung.com
In-Soo Nam edited this article.
