Trump unveils 10 pct 'baseline' tariff, 26 pct 'reciprocal' tariff on S. Korea

Welcome to Within The Frame where we bring the most pressing issues across the globe into focus, I'm Kim Mok-yeon.

President Trump has taken a bold and controversial step—announcing a sweeping 10% tariff on all imports into the U.S., with even steeper rates for 60 countries. South Korea, despite its free trade pact with the U.S., has been hit with a 26% reciprocal tariff—more than Japan or the EU.

The move is fueling fears of a new era of protectionism and a potential global trade war.

With major economies preparing to retaliate, markets are on edge, and export-driven nations are bracing for impact.

Is this the beginning of a broader trade conflict? And how should South Korea respond as the pressure builds?

For more on this, we invite Troy Stangarone, Director of the Hyundai Motor-Korea Foundation Center for Korean History and Public Policy at Wilson Center. Welcome.

Also joining us is Kim Yong-Jin, Professor at Sogang Business School. Great to have you.

1. (Kim) Let's start with the general idea Professor Kim, so President Trump has announced a base 10% tariff on all countries, and additional tariffs on 60 nations. Should we view this as a shift toward a "new era of protectionism"? What's your overall assessment of the Trump administration's latest tariff announcement?

2. (Stangarone) Now to Director Stangarone, President Trump imposed a 34% tariff on China, 24% on Japan, and 20% on the European Union. As major countries respond with plans for retaliatory measures, concerns of a global trade war are growing. What level of impact do you expect on the global economy?

3. (Stangarone) As for South Korea, we have been hit with a 26% reciprocal tariff— which is higher than Japan and the EU, despite their larger trade surpluses with the U.S. Director, on what grounds do you think this 26% rate was determined?

4. (Kim) With the announcement of the 26% reciprocal tariff, Korea's export-driven economy is expected to take a hit. While sectors like steel, aluminum, and automobiles—already subject to tariffs—are exempt from the latest reciprocal tariffs, impact across other industries seems inevitable. What's your outlook Professor?

5. (Stangarone) The 25% tariff on automobiles has been in effect since April 2nd local time. We are aware that Hyundai Motor Group previously announced major investment plans in the U.S., yet they still will have to face tariff burdens. Director, Do you think local production is the only viable alternative?

6. (Kim) Some view President Trump's tariff move as just the beginning. Key export items like semiconductors and emerging sectors such as pharmaceuticals are now being identified as potential targets for itemized tariffs. Professor Kim, How wide and deep do you expect these tariffs to go?

7. (Stangarone) Now turning to its impact, There are growing warnings that Trump's tariffs could deal a significant blow not only to trade partners but also to the U.S. economy itself. Director, could the President's tariff policy lead the U.S. into an economic downturn? And could domestic backlash affect Trump's trade strategy?

8. (Stangarone) Since President Trump hinted at post-announcement negotiations, some view the steep tariff levels as an opening bid. Is it reasonable to expect a sharp reduction in tariffs depending on how future negotiations unfold?

9. (Kim) As country-specific tariffs are set to go into effect starting April 9th, the Korean government has pledged to focus on negotiations. Professor, What negotiation cards does South Korea have in dealing with the U.S.?

10. (Kim) The reciprocal tariff measures have led some to assess that the Korea-U.S. Free Trade Agreement is effectively nullified. Korea may now be forced into talks on a new agreement. If Korea enters renegotiations, what conditions might the U.S. demand—and how should Korea respond?