Industry Minister Kim Jung-kwan and US Commerce Secretary Howard Lutnick wrapped up their initial discussions on renewed tariff tensions between their countries without reaching a consensus. The meeting, held in Washington, followed President Trump’s recent threats to escalate reciprocal tariffs on South Korea. Despite the lack of an agreement, both parties agreed to reconvene the next day for further negotiations.
Kim informed reporters after the meeting that they had engaged in extensive discussions and decided to meet again the following morning. However, he clarified that no final decision had been reached at this stage. When asked about preventing the potential tariff increase, Kim refrained from confirming any success in averting the imposition of higher tariffs on South Korea.
The focus of the talks was expected to center on Seoul’s commitment to fulfilling its investment obligations under a bilateral trade agreement established in late July. South Korea had pledged to invest $350 billion in the United States as part of the deal, which also involved reciprocal tariff reductions by the US on South Korean goods. Additionally, Kim planned to hold meetings with other key officials from the Trump administration, including Energy Secretary Chris Wright, during his visit to Washington.
President Trump had previously indicated a willingness to find a resolution with South Korea following his earlier tariff threats. He assured reporters at the White House that discussions were ongoing to address the trade issues between the two nations. Trump’s initial announcement to raise tariffs on South Korea, including on auto, lumber, and pharmaceutical products, stemmed from concerns over delays in Seoul’s legislative processes supporting the trade agreement.
