Seoul to continue 'amicable' talks with US on tariff issues

Seoul, Feb 23 (IANS) South Korea will continue holding "amicable" consultations with the United States on tariff issues to safeguard the favourable export conditions secured through its bilateral trade deal with the US, Seoul's industry minister said on Monday.

Kim Jung-kwan, minister of trade, industry and resources, also vowed continued support for local businesses to boost their global competitiveness amid trade uncertainties, reports Yonhap news agency.

"Under the principle of maximising national interest, the government will continue close communications and pursue amicable consultations to ensure that the balance of benefits and favourable export conditions secured through the Korea-U.S. tariff agreement are not undermined," he said, according to the ministry.

Kim made the remarks in a meeting with local business representatives to discuss Seoul's strategy after the U.S. Supreme Court struck down U.S. President Donald Trump's use of the 1977 International Emergency Economic Powers Act (IEEPA) to justify duties on South Korea and other trading partners, including "reciprocal" tariffs.

Following the ruling, Trump announced a new temporary global tariff of 15 percent and vowed to issue "new and legally permissible" duties to replace the nullified reciprocal tariffs.

Kim said the U.S. administration is expected to "aggressively" push for alternative measures to continue its sweeping tariff policies, such as Sections 122 and 301 of the Trade Act, noting that global trade uncertainties will likely further increase.

The Section 122 of the Trade Act of 1974 allows the U.S. president to address certain fundamental international payment problems through surcharges and other special import restrictions while Section 301 of the same act empowers the office of the U.S. Trade Representative to investigate unfair trade practices by foreign countries and take actions, such as imposing tariffs.

Regarding the possibility that Korea may be included in Washington's probe under Section 301, Kim said, "We are not making any assumptions," but insisted the country must carefully manage various trade issues to ensure that it is not subject to such measures.

"We will steadfastly push for policies to strengthen the competitiveness of our companies and diversify exports in response to possible changes in export conditions, while collaborating with related agencies and industry associations to provide timely information on tariff refunds to companies to help them address uncertainties related to the issue," Kim said.

After the meeting, Kim told reporters that the government is continuing its preliminary review into Korea's potential investment projects in the U.S. regardless of the Supreme Court ruling.

Earlier this month, the government launched a committee to begin the preliminary review process as Trump threatened to raise reciprocal tariffs and auto duties on Korea back to 25 percent, citing a delay in Seoul's legislative process to implement the bilateral trade deal finalised last year.