FX.co ★ South Korean Won Gains on US-China Tariff Extension

The South Korean won appreciated to approximately 1,389 against the dollar on Tuesday, reversing a two-day downturn. This improvement came in response to President Trump's decision to extend reduced tariffs on Chinese goods for an additional 90 days. This measure alleviated pressure on South Korea’s export-dependent economy and prevented a return to the peak tariff levels observed in April. Under this extension, US tariffs remain at 30%, while Chinese tariffs hold at 10%, fostering a more favorable trade environment and bolstering expectations for stable global demand in critical sectors like semiconductors. South Korean Trade Minister Yeo Han-Koo announced that the government would enhance engagement with APEC to tackle growing trade, industry, and security fragmentations. Efforts will also focus on diversifying supply chains and expanding export connections with ASEAN and India. These initiatives form part of a comprehensive strategy aimed at mitigating external risks, fortifying economic resilience, and ensuring market access amid evolving global trade landscapes.