10.04.202501:45:11UTC+00South Korean Won Weakens

The South Korean won depreciated significantly, reaching around 1,460 per dollar, as escalating trade tensions between the U.S. and China cast a shadow over President Trump's 90-day tariff moratorium. This moratorium featured a reduction to a 10% tariff for countries, including South Korea, which refrained from retaliatory actions, replacing previous tariffs of up to 25%. However, President Trump escalated the tariff war with China by raising tariffs on Chinese imports to 125% in response to Beijing's countermeasures. This development heavily impacted the export-reliant won, given South Korea's significant trading partnership with China. The temporary relief on tariffs has nevertheless opened the door to potential negotiations. South Korea's chief trade negotiator, Cheong In-kyo, expressed the nation's active pursuit of further tariff reductions through diplomatic discussions. Additionally, the Industry Ministry announced on Thursday that the government plans to implement rapid support measures for the domestic semiconductor industry to counteract the adverse effects of U.S. tariffs on semiconductor imports, which represent South Korea's largest export sector.