South Korea Presses U.S. to End New Tariffs

Advanced Level | May 21, 2025

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South Korea U.S. Tariffs Dispute: Seeking Relief from Harsh Trade Barriers

South Korea is calling on the United States to cancel or reduce new tariffs that are hurting key parts of its economy. These 25% tariffs, part of President Trump’s “Liberation Day” trade policy, are set to take full effect on July 8, 2025. They affect a wide range of products, including Korean-made cars, semiconductors, and pharmaceutical goods.

South Korean officials say the tariffs are unfair and risk damaging the strong economic ties between the two countries. They’ve pointed out that Korean companies provide essential parts and technologies that support U.S. manufacturing and innovation. “We are allies, not adversaries,” one South Korean trade official told the press.

Economic Impact of the South Korea U.S. Tariffs Dispute

To help soften the blow, the South Korean government is offering major support to affected industries. A relief package of 28.6 trillion won (about $20.6 billion USD) will provide financial aid, tax breaks, and research funding to businesses hurt by the tariffs. Officials are also pushing for ongoing negotiations with U.S. trade representatives.

Analysts say the stakes are high. South Korea is one of the world’s top exporters of advanced technology. If these tariffs stay in place, the costs of consumer electronics and cars in the U.S. could rise, and the global supply chain could be disrupted.

Why It Matters to You

If you work in technology, biotech, or auto manufacturing, this South Korea U.S. tariffs dispute could affect your supply chain, pricing, and partnership opportunities. Even outside those sectors, this story shows how global trade tensions can have local consequences.

This article was inspired by Anadolu Ajansı and Reuters (May 16, 2025).

Vocabulary

Tariff (noun): A tax placed on goods coming into a country.
Example: The new tariff made Korean cars more expensive in the U.S.
Adversary (noun): An opponent or enemy.
Example: Allies should not treat each other as adversaries.
Dispute (noun): A serious disagreement or argument.
Example: The trade dispute has affected global markets.
Relief package (noun): Government support for people or industries in trouble.
Example: The government announced a relief package for small businesses.
Innovation (noun): New ideas or inventions.
Example: Innovation drives growth in the tech industry.
Manufacturing (noun): The process of making goods in large quantities.
Example: Car manufacturing slowed down due to the tariffs.
Supply chain (noun): The system of making and delivering a product.
Example: A delay in one part of the supply chain can affect the entire product.
Stake (noun): Something important that could be lost or gained.
Example: With billions at stake, both countries want a deal.
Negotiate (verb): To talk in order to reach an agreement.
Example: South Korea is negotiating for better trade terms.
Disruption (noun): A break in the normal flow of something.
Example: The tariffs could cause serious supply chain disruptions.

Discussion Questions (About the Article)

What products are being affected by the new U.S. tariffs?
How is South Korea responding to the tariffs?
Why is the South Korean government offering a relief package?
What are the possible effects of the tariffs on U.S. consumers?
Why do South Korean officials say these tariffs are unfair?

Discussion Questions (About the Topic)

Do you think trade policies should be used to pressure allies?
How important are supply chains in your industry or daily life?
Should governments always step in with financial support?
How can trade disputes between allies be resolved?
What lessons can businesses learn from global trade tensions?

Related Idiom

“Throw a wrench in the works”
Meaning: To cause a problem that stops something from working smoothly.
Example: These new tariffs really threw a wrench in the works for Korean exporters.

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