"If tariffs get raised, the first alternative firms can consider will be raising direct investment and on-site production," Trade Minister Cheong In-kyo stated, addressing potential responses from South Korean companies towards higher U.S. tariffs.
"There are ongoing investments already, and there is a possibility that investment could accelerate, followed by an increase in U.S.-bound exports by small and medium-sized parts manufacturers," Cheong explained, highlighting the proactive strategies of firms in light of tariff threats.
"Trump has floated the idea of imposing blanket tariffs of 10% to 20% on all U.S. imports, which a South Korean state-run think tank estimated would cause the trade-dependent economy to lose as much as $44.8 billion in exports," depicting the potential economic impact of proposed tariffs.
"South Korean companies' investment in the U.S. amounted to $27 billion last year, about 44% of the overall investment by Korean firms overseas, which is the highest share since 1998," illustrating the significant financial commitments of South Koreans to U.S. operations.
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