Industry minister meets S. Korean firms in Vietnam to discuss response to U.S. tariffs

Industry Minister Ahn Duk-geun held a meeting with South Korean companies operating in Vietnam on Monday to address the firms’ growing concerns over the latest tariff measures proposed by the United States.

Ahn met with representatives from 16 South Korean companies with business operations in the Southeast Asian nation, including major exporters, such as Samsung Electronics Co. and Hyundai Motor Co., to listen to their difficulties arising from Washington’s reciprocal tariff policy and share possible response strategies, according to the Ministry of Trade, Industry and Energy.

“To minimize potential damage to our companies, we will continue to communicate closely not only with the U.S. government but also with the Vietnamese government through high-level talks and intergovernmental consultation channels,” Ahn was quoted by the ministry as saying.

U.S. President Donald Trump recently proposed imposing a 46 percent reciprocal tariff on imports from Vietnam — a move that has raised concerns for many South Korean firms that rely heavily on Vietnamese production lines for exports to the U.S.

Trump has since suggested a 90-day suspension of reciprocal tariffs, with a baseline tariff of 10 percent imposed on all countries until reciprocal tariffs are confirmed.

Although the final outcome may vary depending on future negotiations, concerns are mounting that the proposed 46 percent rate for Vietnam — the highest rate for any country except for China — could significantly impact South Korean firms exporting Vietnam-produced goods to the U.S.

In 2023, Samsung Electronics exported US$54.4 billion worth of products, including smartphones and home appliances, from its Vietnamese factories to markets, including the U.S. The figure accounted for approximately 14 percent of Vietnam’s total exports.