SEOUL, September 22 (AJP) - South Korea's tariffs on U.S. exports surged to nearly 5 trillion won ($3.3 billion) in the second quarter, marking the fastest growth among the top 10 exporting countries to the U.S.
The finding was released in a report Monday by the Korea Chamber of Commerce and Industry (KCCI).
The report highlights a significant financial burden on South Korean exporters, with tariffs growing 46 times compared to the fourth quarter of last year — the highest increase among the top 10 countries. This places South Korea sixth in total tariffs paid to the U.S., following China, Mexico, Japan, Germany, and Vietnam.
The steep increase follows the imposition of a 10 percent general tariff and new specific tariffs on key sectors, including automobiles, auto parts, steel, and aluminum, which have traditionally enjoyed low tariffs under the Korea-U.S. Free Trade Agreement.
The automotive sector was hit particularly hard, accounting for the largest share of the tariffs at $1.9 billion, or 57.5 percent of the total. This was driven by a 25 percent tariff on finished cars in April and a similar tariff on auto parts in May.
In response, the KCCI is urging for government support and legislative action to mitigate the impact.
Kang Seok-gu, head of research at the KCCI, emphasized the need for policies to help companies adapt to the new trade environment, suggesting measures such as a reduction of the automotive tariff to 15 percent and a "domestic production promotion tax" for strategic industries.
"Assuming exporters bear a quarter of the 15 percent mutual tariff, they face a 3.75 percent burden on U.S. exports," Kang stated. "Government support is crucial to help companies adapt to the new trade environment and stay competitive."
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
Copyright ⓒ Aju Press All rights reserved.
