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.

Automakers such as General Motors and South Korea-based Hyundai Motor export vehicles tariff-free from South Korea.

As U.S. President Donald Trump announced plans to impose "reciprocal" tariffs on trading partners, Korea is moving quickly to secure its position ahead of the implementation, which could take effect as early as April.