Markets on Edge: Trump’s Tariff Threats Spark Global Uncertainty

The government will closely monitor domestic and international financial markets for any increased volatility as U.S. President Donald Trump’s letters to major trading partners regarding his tariff plans may have exacerbated market uncertainties, Seoul’s vice finance minister said Tuesday.

First Vice Finance Minister Lee Hyoung-il, currently serving as acting finance minister, stated during an emergency meeting to assess the impact of Washington’s latest move, “Under close cooperation with relevant agencies, we will closely monitor developments related to U.S. tariffs and their impact on financial markets and the real economy.”

“Should the market exhibit excessive volatility that deviates from our economic fundamentals, we plan to take immediate and bold action in accordance with our contingency plans tailored to various scenarios,” he added.

The ministry reported that global financial markets showed increased volatility after Trump began sending tariff letters to 14 countries, including South Korea and Japan, while extending the deadline for tariff negotiations to Aug. 1. A 90-day suspension of U.S. reciprocal tariffs was originally set to expire Tuesday.

In his letter to South Korean President Lee Jae Myung, Trump declared that the U.S. will impose 25 percent reciprocal tariffs on Korean products starting Aug. 1. However, he indicated that adjustments might be possible if Seoul eliminates its tariff and non-tariff policies and trade barriers.

Overnight, Wall Street closed lower and the U.S. dollar gained ground against other currencies, reflecting uncertainties surrounding U.S. tariff policies. (Yonhap)