[Morning Briefing] Trump imposes 25% reciprocal tariff on South Korea… US stock market plunges in after-hours trading

◆Trump imposes 25% reciprocal tariff on South Korea

U.S. President Donald Trump officially announced early this morning that a 25% reciprocal tariff will be imposed on all products produced in South Korea and imported into the United States. The reciprocal tariff rates by country are China 34%, European Union (EU) 20%, Vietnam 46%, Taiwan 32%, Japan 24%, and India 26%. This reciprocal tariff, aimed at eliminating the discrimination faced by American companies due to other countries' tariff and non-tariff trade barriers, consists of a basic tariff (effective in 5 days) and an individual tariff for so-called 'worst countries' (effective in 9 days). As the U.S. decided to impose comprehensive tariffs on all imports beyond certain countries and items, the tariff war is set to expand to a global level.

◆New York stock market rises with resolution of tariff uncertainty

The New York stock market rose as it preemptively reflected the resolution of reciprocal tariff uncertainty. At the New York Stock Exchange early this morning, the Dow Jones and S&P 500 indices rose by 0.56% and 0.67%, respectively. The Nasdaq index also rose by 0.87%. President Trump announced the country-specific reciprocal tariffs targeting all of America's trade partners in the Rose Garden of the White House immediately after the stock market closed. The market seems to have judged that some uncertainty was resolved with the announcement of the reciprocal tariffs. Among the 'Magnificent 7' large tech stocks, Nvidia (0.25%), Apple (0.31%), Tesla (5.33%), and Amazon (2.00%) rose, while Microsoft (0.01%), Alphabet (0.02%), and Meta (0.35%) fell. However, most stocks showed weakness in after-hours trading due to higher-than-expected tariff rates following the announcement.

◆Democratic Party wins in 5 basic local elections

In the April 2 by-elections for basic local government heads, the People Power Party won in Gimcheon, Gyeongbuk, the Democratic Party of Korea won in Geoje, Gyeongnam, and Asan, Chungnam, and the National Innovation Party won in Damyang, Jeonnam. The National Innovation Party produced a local government head for the first time since its founding. There was a clash between opposition candidates for the positions of Guro District Chief in Seoul and Damyang County Chief in Jeonnam, where the People Power Party did not nominate candidates. Democratic Party candidate Jang In-hong was elected as Guro District Chief, and National Innovation Party candidate Jeong Cheol-won was elected as Damyang County Chief. In the Busan Superintendent of Education election, progressive candidate Kim Seok-jun was elected. The final voter turnout for this by-election was tentatively tallied at 26.27%.

◆One day left until Yoon's impeachment ruling

With one day left until the impeachment ruling of President Yoon Suk-yeol, the Constitutional Court is accelerating its final preparations. The court is expected to hold judges' meetings this morning and afternoon to finalize the details of the ruling procedure and the wording of the decision. It is known that the court has already reached a rough conclusion on whether to uphold, dismiss, or reject the National Assembly's impeachment motion through a verdict before announcing the ruling date on the 1st. The final decision will be drafted by the presiding judge based on the majority opinion. A decision to remove from office requires the consent of at least 6 out of the 8 incumbent judges. If the court upholds the impeachment motion, President Yoon will be removed from office, and if dismissed or rejected, he will immediately return to duty.

◆Cloudy with large temperature differences today

Today, Thursday, it is expected to be cloudy nationwide with a significant difference in temperature between day and night. The Korea Meteorological Administration has forecasted that there will be dense fog with visibility of around 200 meters in the inland areas of Gyeonggi, inland Gangwon, northern Chungbuk, and inland Gyeongbuk until this morning. Between the afternoon and evening, there may be raindrops of less than 0.1mm in inland Gangwon, inland Chungcheong, eastern Jeonbuk, inland Gyeongbuk, and northwestern inland Gyeongnam. Today's highest daytime temperature will be between 12 and 18 degrees. The temperature difference between day and night in the inland areas nationwide is expected to be around 15 degrees, so care should be taken for health management. The air is expected to be very dry, especially in the inland areas of Gyeongbuk and southern Jeju, where a dry weather advisory is in effect, and dry weather will continue in other areas as well.

Noh Jeong-dong, Hankyung.com reporter dong2@hankyung.com