Gov’t to monitor financial volatility after Trump’s tariff letters

SEOUL, July 8 (Yonhap) -- The government will closely monitor domestic and offshore financial markets for any increased volatility as U.S. President Donald Trump's letters to major trading partners on his tariff plans may have exacerbated market uncertainties, Seoul's vice finance minister said Tuesday. "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," First Vice Finance Minister Lee Hyoung-il said in an emergency meeting held to assess the impact of Washington's latest move. Lee is currently serving as the acting finance minister. "If the market shows excessive volatility that deviates from our economic fundamentals, we plan to take an immediate and bold action in accordance with our contingency plans tailored to various scenarios," it added. The ministry said 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 the U.S.' reciprocal tariffs was originally set to expire Tuesday (U.S. time). In his letter to South Korean President Lee Jae Myung, Trump said his country will impose 25 percent reciprocal tariffs on Korean products starting on Aug. 1, but that an adjustment may 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. First Vice Finance Minister Lee Hyoung-il speaks at a meeting held in Seoul on July 4, 2025, to monitor financial markets, in this photo provided by his office. (PHOTO NOT FOR SALE) (Yonhap) nyway@yna.co.kr(END)