Government Requests US to Exclude Korea from Tariff Measures, Maintain IRA and Semiconductor Subsidies

The government has requested the United States to exclude South Korea from tariff measures including reciprocal tariffs under a potential second Trump administration, and conveyed the need for continued support for companies investing in the US through the Inflation Reduction Act (IRA) and CHIPS Act subsidies.

The Ministry of Trade, Industry and Energy announced on the 21st that Vice Minister for Trade Park Jong-won visited Washington DC from the 17th to 20th (local time) and officially conveyed Korea's position during meetings with government officials from the White House, Department of Commerce, US Trade Representative (USTR), as well as Congressional members and think tank experts.

Vice Minister Park explained the close economic relationship between the two countries to the White House, Department of Commerce, and USTR. He also emphasized how Korean companies have contributed to the US economy through large-scale investments and job creation.

Vice Minister Park emphasized that almost all tariffs between the two countries have already been eliminated under the Korea-US Free Trade Agreement (FTA), and requested that Korea be excluded from various tariff measures including reciprocal tariffs and those on steel and aluminum. He also proposed discussing major issues and ways to expand cooperation through high-level consultations between the two countries in the near future.

In meetings with key US Congressional figures, Vice Minister Park noted that as Korean companies' investments have accelerated the connection of Korea-US supply chains, he requested the continued creation of favorable policy environments for Korean companies, including IRA and CHIPS Act subsidies.

Lee Song-ryeol, Hankyung.com Reporter yisr0203@hankyung.com