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.

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.

North Korea has accused the US of engaging in a "hostile military act" and posing a "grave security threat" to the country by sending a nuclear submarine to a South Korean port. The USS Alexandria entered the Busan port on Monday for supplies and rest for its crew,