Acting President Han Duck-soo Responds to Trump's Trade Tariffs

Acting President Han Duck-soo from South Korea launched critical business support measures on April 2, 2025, as the nation prepared to meet a rising global trade crisis. The industry ministry issued this announcement after U.S. President Donald Trump implemented immediate tariff regulations that targeted South Korean exports using a 25% tax rate. South Korea struggles as Asia’s fourth-largest economy because of a mounting trade conflict that requires immediate protection measures for its export-based manufacturing sector.

Han spoke with top officials to stress that the entire government must dedicate its full resources toward managing economic consequences with special focus on automobiles, which form an essential part of South Korea’s economy. The tariffs under Trump’s “America First” policy specifically target South Korea as well as Japan for supposedly unfair trade practices. Early market activity resulted in a 2.7% KOSPI index decline to its lowest level since February as the automotive and semiconductor sectors faced significant losses due to concerns about disrupted U.S. supply chains.

The acting president ordered the industry minister to study the extent of the tariffs while actively working with Washington to prevent economic damage. Han will lead a private-sector meeting this week to create emergency measures as the detailed response plans remain undetermined. Major exports of automobiles and electronics, together with Samsung and LG's key manufacturing operations in Vietnam, face significant risks due to the 46% tariff imposed on Vietnamese products.

These U.S. tariffs would reduce South Korea's projected 1.0% GDP growth rate for 2025 by 0.16% because the country depends so heavily on exporting to America. According to economist Park Sang-hyun at iM Securities, the new measures caused a "significant blow" that led to extensive damage throughout Asian supply networks. The decision by Han to ask for calm and decisive action proves South Korea will persist through this unknown situation while stock indices in Tokyo and Beijing experience market declines. The country prepares for challenging times of diplomatic interaction and economic restructuring as the trade dispute progresses.