SEOUL, February 19 (AJP) - U.S. President Donald Trump reaffirmed Wednesday that his administration would impose tariffs of approximately 25 percent on imported automobiles, semiconductors, and pharmaceuticals, with formal details expected to be unveiled around April 2.
Speaking to reporters at his Mar-a-Lago in Florida, Trump outlined his plan, specifying that automobile tariffs would likely be set at 25 percent. He suggested that tariffs on semiconductors and pharmaceuticals could be even steeper, potentially escalating over a one-year period.
“We’re going to give companies time to adjust,” Trump said, emphasizing a phased approach that would allow businesses to establish manufacturing facilities in the United States to circumvent the new tariffs.
Meanwhile, the South Korean government has unveiled a historic 366 trillion won ($275 billion) trade financing package, aimed at supporting its exporters amid growing global trade uncertainties.
The measures include the introduction of "tariff response export vouchers," prioritizing small and medium-sized enterprises (SMEs) affected by the impending U.S. trade restrictions.
The government will also double trade insurance limits for impacted companies and offer discounts of up to 60 percent on insurance premiums through the first half of 2025.
To further support its domestic industries, South Korea will provide corporate and income tax benefits to companies relocating production back to the country.
Notably, businesses will be eligible for tax support even before fully winding down overseas operations. A substantial 100 trillion won of the relief package has been specifically allocated to SMEs.
“This is a critical period of escalating global trade wars, intensifying competition from China, and ongoing challenges from high interest rates and currency fluctuations,” Trade Minister Ahn Duk-geun said in a statement. “The first half of the year will be a decisive moment for maintaining export momentum.”
The South Korean government is also moving to diversify its trade portfolio. Plans are underway to establish or expand 14 overseas trade offices, targeting markets beyond the United States and China, with a particular focus on the Global South.
Additionally, the administration aims to streamline customs procedures for semiconductor research and testing materials, a key industry for the nation’s economy.
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