US President Donald Trump has assured that his administration will find a resolution with South Korea following his recent threat to increase tariffs on the Asian ally. This statement has sparked optimism for negotiations between Seoul and Washington to address their trade tensions. South Korea’s Industry Minister Kim Jung-kwan is set to visit the US for discussions with Commerce Secretary Howard Lutnick, as reported by Yonhap news agency.
“We will work something out with South Korea,” Trump stated during a press briefing at the White House in response to queries about potential tariff hikes on Korea. Earlier this week, Trump announced plans to raise “reciprocal” tariffs and duties on auto, lumber, and pharmaceutical products from South Korea to 25 percent from 15 percent. This decision was prompted by concerns over delays in Seoul’s legislative processes supporting the trade deal implementation.
A White House official informed Yonhap News Agency that South Korea has shown “no progress” in fulfilling its obligations under the bilateral trade agreement, despite Trump’s tariff reductions in accordance with the deal. The agreement, finalized after negotiations that began in late July, includes Seoul committing to investing $350 billion in the US among other commitments, in exchange for the US lowering “reciprocal” tariffs to 15 percent from 25 percent.
Trump’s recent tariff threat coincides with Washington’s unease over South Korea’s investigation into Coupang Inc., a US-listed company, regarding a significant customer data breach. Additionally, concerns have arisen over South Korea’s regulatory actions towards online platform companies. There are also worries that the weakening Korean won against the US dollar might hinder Seoul’s ability to fulfill its investment promises under the trade agreement with Washington.
