South Korea's free trade agreement with the United States could help mitigate its exposure to reciprocal tariffs threatened by U.S. President Donald Trump, economists at two major investment banks have said.

SEOUL (Reuters) - South Korea's Trade Minister Cheong In-kyo said on Tuesday that U.S. President Donald Trump's 25% tariffs on steel and aluminum imports due to come into force in March would reduce U.S. steel demand and erode steel exporters' profitability.

The administration of U.S. President Donald Trump announced Monday that the levies will kick in from March 12, with the goal of "encouraging investment and expansion of production by domestic steel producers" and "mitigating the threatened impairment of U.S. national security."