The South Korean government has assessed that the U.S. increase in tariffs against China is having a limited effect on the local economy. 

The government issued the assessment on Monday during an economic meeting in Seoul and vowed to take proper, timely measures in case of an excessive increase in volatility in the financial market during the course of U.S-China trade talks. 

Presiding over the meeting, First Vice Finance Minister Lee Ho-seung said the U.S. tariff hike is having a limited impact on the real economy as the increased tariff is applied to Chinese shipments that depart from China after May tenth.

However, Lee said the trade tensions between Washington and Beijing have reemerged as economic uncertainties for the global economy, leading to a possible increase in volatility in the global financial market.