South Korea Struggles to Respond to U.S. Tariffs Amid Power Vacuum

South Korea faces heightened diplomatic and economic risks as a power vacuum leaves it unable to respond to US President Donald Trump’s import tariffs, while Washington has gone so far as to place the country on a security liability watch list, Nami Matsuura reported for Nikkei Asia.

The decision by the US government appears to be linked to concerns about South Korea’s information security management.

Ahn Duk-geun, South Korea’s Minister of Trade, Industry, and Energy, traveled to Washington to explain Seoul’s position after it was revealed that the US Energy Department had designated South Korea as a “sensitive country” requiring special consideration in areas such as security, terrorism, and nuclear nonproliferation.

South Korea has been mired in political turmoil as impeached President Yoon Suk Yeol remains suspended from office until the Constitutional Court rules on whether he should be permanently removed.

His suspension follows his abrupt and short-lived declaration of martial law in December.

The new designation places South Korea in the same category as China, North Korea, Israel, Russia, and Iran. The decision appears to be linked to concerns about South Korea’s information security management.

The designation—first made under the Biden administration—is expected to take effect on April 15.

It could lead to restrictions on personnel exchanges and information-sharing in joint research fields, including nuclear power and artificial intelligence (AI).

The ripple effects could be significant, impacting semiconductors, energy, and other cutting-edge industries crucial to South Korea, which derives nearly 40% of its GDP from exports.