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.

Donald Trump's trade advisers were finalizing plans on Wednesday for the reciprocal tariffs the U.S. president has vowed to impose on every country that charges duties on U.S. imports, ratcheting up fears of a widening global trade war.

US President Donald Trump's use of tariffs as a blunt weapon to extract concessions on everything from commerce to immigration and drug trafficking could redraw global trading norms, analysts say. Since his inauguration on Jan.

South Korea's acting President Choi Sang-mok on Tuesday said his government would seek talks with the U.S. administration about Washington's 25% tariffs on steel and aluminium imports to reflect the interests of its companies.

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,