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.

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

SEOUL (Reuters) - South Korea's acting President Choi Sang-mok discussed on Monday responses to U.S. President Donald Trump's proposed tariffs on steel and aluminum, last week's U.S.-Japan summit, and responding to major trade issues in the digital sector in a government meeting, the finance ministry said.