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.

Economists surveyed by Bloomberg lowered their estimates for South Korea’s economic growth two weeks before the central bank meets to decide policy, an event that looks less like a slam-dunk rate cut after the governor left the door open to another hold.

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,

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.