WSJ: “EU, Mexico, South Korea Among Key Targets”
Countries Rush to Ship Before Tariff Implementation
Government Prepares for Worst-Case Scenarios
It has been reported that South Korea is likely to be included in the reciprocal tariffs destined to be announced by the U.S. on April 2, a date proclaimed as the “Day of Liberation.” With global companies like Hyundai and Kia having no means to respond independently, they are resorting to the stopgap measure of accelerating exports before tariffs are enforced. Although there are speculations that the announcement of specific tariffs on automobiles and other products might be delayed, this is only expected to buy a brief reprieve.
South Korean government views the tariff imposition as a given and is striving to negotiate with the U.S. to ensure South Korea receives the lowest possible tariff rates relative to competitor countries, thereby minimizing damage. The Wall Street Journal (WSJ) reported on the 23rd (local time) that the Trump administration is narrowing the scope of tariffs set to take effect on April 2. The tariffs to be announced that day are expected to focus on countries term described as the “Dirty 15.”
Scott Bethune, U.S. Secretary of the Treasury, recently mentioned in a Fox News interview that there are countries they refer to as the “Dirty 15” that have imposed significant tariffs on the U.S. Though specific countries were not named, WSJ suggests that the European Union (EU), Australia, Brazil, Canada, China, India, Japan, Mexico, Russia, Vietnam, along with South Korea are likely to be included.
These targeted countries are expected to face substantially high tariffs. WSJ forecasts that the tariffs imposed on major U.S. trade partners will be unlike anything seen in decades. Additionally, there is speculation that President Trump might use emergency economic powers to announce and implement the tariffs immediately on April 2, with little expectation of exemptions being granted.
Analyses indicate that tariffs on specific categories like automobiles may be postponed, focusing initially on imposing reciprocal tariffs. As the U.S.-initiated tariff storm looms, global automakers such as Hyundai and Kia are hastily moving forward with exports during the remaining week.
According to the Financial Times (FT), industry sources indicated that shipping companies are moving “thousands” more vehicles from Asia and Europe to the U.S., acknowledging the manufacturers’ requests. FT reported that Hyundai, while declining to comment on its tariff response strategy, stated, “We continue to optimize our shipping plans to adapt to market conditions.” Data analyzed by FT shows a 15% year-on-year increase in vehicle shipments from South Korea to North America last month, with EU and Japan shipments increasing by 22% and 14%, respectively.
Honda is also advancing shipments from Mexico and Canada to the U.S. Stellantis is relocating stock from its Mexican and Canadian plants to its U.S. facilities and is ramping up U.S.-bound vehicle production during the one-month grace period. In contrast, Toyota stated to FT that it has not increased its shipments to the U.S.
President Trump has expressed his intention to impose tariffs on imported cars and, when questioned about this on March 18, commented, “I might have to tell you on April 2, but it could be around 25%.” However, reports suggest that when Trump announces the reciprocal tariffs on the 2nd, a measured approach will be taken, and industries such as automobiles and semiconductors may not be included, indicating ongoing uncertainties.
Thus, the South Korean government is operating under the assumption that the Trump administration’s tariffs next month are inevitable and plans to focus more on negotiations thereafter. An official from the Ministry of Trade, Industry, and Energy stated on the 24th, “We are preparing to respond based on the presumption of the reciprocal tariffs being imposed on April 2,” and “We are readying countermeasures assuming the worst possible scenarios.” The official added, “This isn’t about the U.S. specifically targeting South Korea; it’s about addressing trade deficit with certain countries. They’re saying things like ‘Buy more American’ or ‘Invest more in the U.S.,’ not about preventing reciprocal tariffs by providing something specific.”
The government sees a high likelihood of South Korea, the ninth-largest trade deficit country with the U.S., being targeted by reciprocal tariffs and is working through high-level and practical negotiations to ensure “amicable treatment.” Efforts are focused on securing comparatively favorable terms when negotiating tariff rates against key competitors like the EU and Japan. Minister of Industry Ahn Deok-geun, who has visited the U.S. twice in three weeks, reportedly discussed with U.S. Secretary of Commerce Howard Lutnick efforts to ensure an amicable outcome at least from the Commerce Department’s standpoint.
An official from the Ministry of Industry relayed that “if reciprocal tariffs are levied, Secretary Lutnick assured that the Commerce Department would consider our request for favorable treatment, though the final decision lies with President Trump.”