South Korea, Vietnam Aim for $150 Billion Trade by 2030 Amid U.S. Tariffs

South Korea is navigating significant economic risks as the U.S. imposes sweeping tariffs under President Trump's trade policies, which have led to a temporary pause in 25% reciprocal tariffs for three months and a sharp decline in the Korean won. The Bank of Korea has kept its interest rate unchanged to support the currency and mitigate the impact of potential global recession fears spurred by shifting U.S. tariffs. In response, South Korea is seeking to negotiate with Washington to reduce tariffs and is preparing additional budget measures to support its economy. At the same time, South Korea and Vietnam are strengthening economic ties and coordinating responses to U.S. tariff threats, aiming to boost bilateral trade and expand South Korean business operations in Vietnam. Despite lower average tariffs under the KORUS agreement, American firms still face significant regulatory barriers in Korea, particularly in digital sectors, highlighting ongoing trade friction beyond tariffs. The broader context reflects the Trump administration's push to address longstanding trade imbalances, with both allies and rivals adjusting strategies amid rising protectionism and global economic uncertainty.