South Korea’s top economic think tank slashed its growth forecast for the country’s economy for the second time in four months on Tuesday, expressing concern about the impact of U.S. President Donald Trump’s expanding tariffs.

The Korea Development Institute now forecasts South Korea’s gross domestic product growth at 1.6% in 2025, largely due to deteriorating global trade conditions since Trump took office in the U.S.

He said, however, the tariffs may offer opportunities for Korean companies to find new export markets. South Korea will "actively consider" whether there is room for negotiation on the tariffs with the United States,

Shares of South Korean steelmakers dropped on Monday, after U.S. President Donald Trump said he would introduce new tariffs. POSCO Holdings shares fell as much as 3.6% to 230,500 won, the lowest since October 2022,

United States President Donald Trump signed two executive orders on Monday to impose a 25% tariff on aluminum and steel imports. "This is a big deal, the beginning of making America rich again," the president said from the Oval Office after signing the order,