By Jihoon Lee and Heekyong Yang
SEOUL (Reuters) – South Korea’s trade minister said on Wednesday he saw domestic companies investing more in the United States if the next U.S. administration introduces higher tariffs.
He made his comments just hours after Republican Donald Trump claimed victory in the 2024 presidential contest.
“If tariffs get raised, the first alternative firms can consider will be raising direct investment and on-site production,” Trade Minister Cheong In-kyo said in an interview with Reuters.
“There are ongoing investments already, and there is a possibility that investment could accelerate, followed by an increase in U.S.-bound exports by small and medium-sized parts manufacturers,” Cheong said.
Trump has floated the idea of imposing blanket tariffs of 10% to 20% on all U.S. imports, which a South Korean state-run think tank estimated last week would cause the trade-dependent economy to lose as much as $44.8 billion in exports.
(Reporting by Jihoon Lee and Heekyong Yang, Editing by Angus MacSwan)
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