South Korea Strategizes Amid New U.S. Trade Deal Challenges

South Korea is gearing up to address the economic ripple effects of heightened U.S. tariffs. The Finance Ministry announced its intent to bolster short-term domestic demand and provide financial support for technological advancements, aiming to boost market competitiveness.

Through a recent deal, South Korea managed to negotiate a 15% tariff instead of the threatened 25% rate on its exports to the U.S., but key issues like defense costs remain unresolved. This leaves room for potential disputes during the upcoming summit between President Trump and South Korean President Lee Jae Myung.

Despite challenges, the South Korean Finance Ministry sees the agreement as an opportunity. The $350 billion investment package within the deal is expected to open new business avenues, strengthen ties with the U.S., and stabilize supply chains. Additionally, initiatives to promote sectors like AI and Korean cultural exports are set to be pivotal for future economic strategies.

(With inputs from agencies.)