South Korea Seeks to Resolve Any ‘Misunderstanding’ with US about Tariff Rates 

South Korea's acting President and Deputy Prime Minister Choi Sang-mok speaks during the 106th Independence Movement Day ceremony at Soongeui Women's University in Seoul on March 1, 2025. (AFP)
South Korea's acting President and Deputy Prime Minister Choi Sang-mok speaks during the 106th Independence Movement Day ceremony at Soongeui Women's University in Seoul on March 1, 2025. (AFP)
TT
20

South Korea Seeks to Resolve Any ‘Misunderstanding’ with US about Tariff Rates 

South Korea's acting President and Deputy Prime Minister Choi Sang-mok speaks during the 106th Independence Movement Day ceremony at Soongeui Women's University in Seoul on March 1, 2025. (AFP)
South Korea's acting President and Deputy Prime Minister Choi Sang-mok speaks during the 106th Independence Movement Day ceremony at Soongeui Women's University in Seoul on March 1, 2025. (AFP)

South Korea's acting president on Monday ordered authorities to actively communicate with the US administration to resolve any misunderstanding over tariffs, after US President Donald Trump recently singled out South Korea for applying high tariffs.

Trump, who has told his economic team to prepare reciprocal tariff plans by early April, said last week during an address to the US Congress that South Korea's average tariff was four times higher than that of the United States, despite military and other assistance Washington has provided to its Asian ally.

Acting President Choi Sang-mok "ordered to actively explain to the US about any misunderstanding of our tariff rates on US imports," the finance ministry said in a statement.

South Korea imposes the second-highest tariff rate among the top 15 US trading partners after India, but for US imports, nearly all tariffs are eliminated under their free trade agreement first signed in 2007 and revised in 2018 during Trump's first term.

As of 2024, South Korea's effective tariff rate on US imports stood at 0.79%, according to Seoul's trade ministry.

Choi said the government would also review non-tariff measures, which Trump said would be considered in his reciprocal tariff plan.

The acting president asked South Korean officials to prepare for consultations with the US on cooperation in the shipbuilding and energy sectors.

Trump had said during his speech that Japan, South Korea and other countries wanted to partner on a natural gas pipeline in Alaska.

South Korea's industry ministry has said the country would "actively engage" in discussions with the US on the project, though said no details had been decided.



Gold Gains on Safe-haven Demand as Trump Expands Trade War

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
TT
20

Gold Gains on Safe-haven Demand as Trump Expands Trade War

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo

Gold prices rose for a third straight session on Friday, as US President Donald Trump's announcement of new tariffs on Canada and broader tariff threats against other trading partners lifted demand for the safe-haven asset.
Spot gold was up 0.5% to $3,339.99 per ounce, as of 0755 GMT. US gold futures gained 0.8% to $3,351.
"We're seeing some growing demand for gold as a haven. There are investors looking for some safety asset despite stock markets hitting highs. And any dip in gold is seen as a buying opportunity now," said Carlo Alberto De Casa, an external analyst at Swissquote.
On Thursday, Trump said US would impose a 35% tariff on imports from Canada and planned to impose blanket duties of 15% or 20% on most other trade partners, Reuters said.
This follows Wednesday's announcement of a 50% tariff on US copper imports and a similar levy on goods from Brazil, along with tariff notifications sent earlier to other trading partners.
Trump also said the European Union could receive a letter on tariff rates by Friday, throwing into question the progress of trade talks between Washington and the 27-nation bloc.
"Rising trade tensions have reinvigorated demand for haven assets such as gold amid the prospect of an economic slowdown. The more dovish Fed is also boosting investor appetite," analysts at ANZ wrote in a note.
Data on Thursday showed weekly jobless claims in the US fell unexpectedly to a seven-week low, indicating stable employment levels.
Federal Reserve Governor Christopher Waller on Thursday reiterated his belief the central bank could cut interest rates at its policy meeting later this month.
Meanwhile, Fed Bank of San Francisco President Mary Daly said two rate cuts remain on the table for this year.
Lower rates boost non-yielding gold's appeal.
Elsewhere, spot silver rose 0.9% to $37.37 per ounce, platinum fell 1% to $1,346.81 and palladium climbed 1.3% to $1,156.44.