The central bank says the nation’s growth rate is in for a considerable blow this year and next, both from the direct impact of U.S. tariffs and from general uncertainty about Washington’s trade policy.

In a report released Monday, the Bank of Korea(BOK) said increased uncertainty in U.S. President Donald Trump’s second term could have an adverse effect on the South Korean economy, regardless of expanded U.S. tariffs.

The BOK’s analysis showed that if Seoul and Washington had failed to strike an agreement on the tariffs, its growth projections would have been revised down by zero-point-17 percentage point for 2025 and zero-point-27 percentage point for 2026.

The central bank said the downward adjustments were reduced to zero-point-13 percentage point and zero-point-16 percentage point after the two sides reached a deal ahead of President Lee Jae Myung’s summit with Trump.

In the report, the BOK called on Seoul to continue its close negotiations with the U.S. regarding the details of their tariff agreement.