South Korea's Tactical Maneuver: Navigating U.S. Tariff Threats

South Korea's U.S. free trade agreement may mitigate the impact of U.S. tariffs. Economists from Barclays and Citi argue that the near-zero tariffs lessen South Korea's vulnerability to U.S. actions. The impact on Korea's exports, particularly food-related, is expected to be limited despite tariff concerns.

South Korea's strategic free trade agreement with the U.S. may serve as a buffer against potential tariff threats from the Trump administration, economists from leading investment banks suggest.

Trump's imposition of tariffs on steel and aluminum imports escalated concerns, but experts from Barclays and Citi believe South Korea's trade pact could shield it from severe repercussions.

Despite global market jitters, South Korea's KOSPI has risen, indicating optimism about the limited impact of tariffs. South Korea is prepared to respond proactively to any negative effects by supporting impacted firms and diversifying its export markets.

(With inputs from agencies.)