The Bank of Korea (BOK) has warned that the broad tariff policies proposed by former U.S. President Donald Trump could put pressure on South Korea’s economic growth and inflation. However, the central bank believes that the impact on the country’s financial markets will be limited.
In a statement on Thursday, the BOK explained that higher U.S. tariffs on imported goods could disrupt South Korea’s exports. Since the United States is one of South Korea’s key trading partners, any restrictions on trade could slow down economic growth. Additionally, if South Korean companies face higher costs due to tariffs, they might pass these costs on to consumers, leading to inflation.
Despite these concerns, the central bank noted that South Korea’s financial markets are strong and well-prepared to handle such external risks. The BOK assured that it would continue to monitor the situation and take necessary steps to minimize any negative effects on the economy.
