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.

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."

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,

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,