90-Day Mutual Tariff Freeze: Rebound or Risk for Korea’s Economy?

상호관세 90일 유예… 한국경제, 반등인가 변수인가?

Welcome to Within The Frame, where we bring the most pressing issues across the globe into focus. I'm Kim Mok-yeon.
In a dramatic shift on April 9th, President Trump announced a 90-day suspension of mutual tariffs for all countries except China — a reversal from his previous hardline stance.
The move immediately rippled across global financial markets, with the Korean won gaining strength and domestic equities rallying on renewed investor optimism.
Yet questions remain: Is this a temporary political maneuver, or the start of a recalibration in U.S. trade strategy?
With uncertainty still looming over core Korean exports like semiconductors and smartphones, and major economic players heading to Washington for key talks, Korea now finds itself at a critical economic and diplomatic juncture.

For more on this, we invite Song Soo-young, Professor of Business and Economics at Chung-Ang University. Welcome.


Also joining us is Professor Hwa-gyun Kim of Texas A&M University. Great to have you again.
Hwagyun Kim, Rogers Rainey & Annie Bob Rainey Professor of Banking and Finance/ Texas A&M University, Mays Business School


1.(Kim) Beginning with Professor Kim, on April 9th, President Trump announced a 90-day suspension of mutual tariffs for all countries except China.
This marked a reversal from his earlier stance that a suspension was impossible. What led to this change?

2. (Song) Let's also touch upon the effects on the exchange rate, Prof. Song. The KRW-USD exchange rate, which once broke through 1,480 won, fell to the 1,420 won range following the mutual tariff suspension. Instability caused by the U.S. tariff policy still lingers How do you forecast the exchange rate going forward?

3.(Kim) Alongside the mutual tariff suspension, President Trump hinted at easing tariffs on automobiles and auto parts, leading to a rise in the domestic stock market.
Prof. Kim, do you think this upward trend in the Korean stock market will continue for the time being? What is your outlook?

4.(Song) Despite strong downside pressure from the U.S. tariff policy and other economic concerns, the Bank of Korea today decided to hold the base rate steady, at 2-point-75 percent. What were the factors behind the hold, and when do you expect a rate cut?

5.(Kim) As part of efforts to pursue trade negotiations, Korea's Deputy Prime Minister Choi Sang-mok is scheduled to meet with Treasury Secretary Vincent during his U.S. visit next week. What is the significance of this U.S.-initiated meeting coming ahead of formal tariff talks?

6. (Song) On top of this, Industry Minister Ahn Duk-geun is expected to visit the U.S. next week for full-fledged tariff adjustment negotiations.
The government has stated it is not reviewing defense cost-sharing talks with the U.S. Prof.Song, What negotiation cards is the Korean government likely to use?

7. (Kim) Ahead of such high-level talks, virtual meetings on the Alaska LNG Project are scheduled to begin this week. Prof.Kim, If South Korea joins the LNG project, how much could it strengthen our negotiation power?

8.(Kim) A couple of days ago, the U.S. officially implemented the list of “sensitive countries,” which includes South Korea. What impact do you think this will have on the Korean economy? Could it affect the upcoming tariff talks?

9. (Song) So Prof. Song, plans to impose tariffs on Korea’s key export items like semiconductors and smartphones have not yet been announced, and an early presidential election is now less than 50 days away. Amid such uncertainty, what kind of strategy should Korea pursue in negotiations with the U.S.?

10.(Song) Meanwhile, on the 15th, the government announced it would expand the size of the essential supplementary budget from the originally proposed 10 trillion won to 12 trillion won. To what extent do you think this will help resolve the prolonged slump in domestic demand?


This wraps up our program for tonight,
Thank you for your insights and your time, Prof.Song and Prof.Kim we appreciate it.
And that will be all from us on Within the Frame.
Be sure to tune in next time as we continue to explore the stories that matter. Until then, stay informed and engaged!

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2025-04-17, 20:30 (KST)