Presidential Office "Inevitable Export Impact to U.S. in the event of U.S., Mexico, and Canada Tariffs"Preemptive Action"

The president's office decided to take a preemptive action, believing that if the new U.S. administration realizes a 25% tariff on Mexico and Canada, it will inevitably affect Korean companies' exports to the U.S.

The presidential office held an "emergency economic and security inspection meeting on trade and customs policies of the new U.S. administration" today (27th) presided over by Sung Tae-yoon, chief of the policy office.

Participants also checked that it affects not only Korean companies produced in Mexico and Canada, but also companies that procure parts from the two countries and produce them in the United States or export intermediate goods to Mexico and Canada, and discussed countermeasures.

In the case of China, most of our companies, such as semiconductors, steel, and automobiles, are producing mainly in domestic demand and exports to the United States are not large, so the direct impact on tariffs will be limited.

However, it said it also checked that a decrease in China's exports to the U.S. could affect exports of intermediate goods to China and expand competition in third countries.

Director Sung emphasized that rather than responding to each policy announcement that the U.S. has been preparing individually, it should preemptively check the comprehensive response plan for each scenario and prepare our negotiations in advance.

In addition, each ministry instructed them to communicate with companies that have entered Mexico, Canada, and China through meetings and analyze the impact on our companies in depth.

The presidential office plans to support Korean companies to invest and trade stably in overseas markets and supply chains, including the United States, and to closely consult with the United States.