South Korea's acting President on Monday instructed authorities to communicate actively with the U.S. Administration to resolve any misunderstandings over tariffs. This comes after U.S. president Donald Trump singled out South Korea recently for applying high tariffs.

Trump has instructed his economic team that they must prepare reciprocal tariff plans before early April.

Last week, during an address before the U.S. Congress, President Obama said that the average tariff in South Korea was four times greater than the United States. This is despite the military and other aid Washington provided to their Asian ally.

The Finance Ministry said that Choi Sangmok, the acting president, "ordered" to actively explain to Americans any misunderstandings about our tariff rates for U.S. imported goods.

South Korea has the second highest tariffs

Tariff

The United States and India are the second-largest trading partners in the world, but nearly all tariffs on imports from India have been eliminated.

Free trade agreement

First signed in 2007, and revised in 2018, during Trump's first tenure.

According to the Seoul trade ministry, South Korea's tariff rate for U.S. imported goods will be 0.79% in 2024.

Choi stated that the government will also examine non-tariff actions, which Trump has said he would consider in his reciprocal tariff plans.

The acting president requested that South Korean officials prepare for consultations on the cooperation with the U.S. in the sectors of shipbuilding and energy.

Trump said in his speech that Japan and South Korea, among other countries, wanted to work together on a pipeline for natural gas in Alaska.

The South Korean industry ministry said that the country would "actively participate" in discussions with America on the project. However, it said that no details had yet been decided. Reporting by Jihoon Lee, Editing by Ed Davies

(source: Reuters)