Seoul: U.S. tariffs on South Korea are unlikely to be raised if the National Assembly approves a special investment bill, according to Industry Minister Kim Jung-kwan. Kim relayed this information upon his return from the United States, where he met with Commerce Secretary Howard Lutnick to discuss trade issues following President Donald Trump's tariff threats earlier this year.
According to Yonhap News Agency, Minister Kim shared that during his meeting with Lutnick, the U.S. officials showed strong approval of the proposed bill, which outlines South Korea's $350 billion investment commitment to the United States. Kim assured reporters at Incheon International Airport that passing the bill should prevent any tariff hikes from being recorded in the Federal Register.
In January, President Trump threatened to increase "reciprocal" tariffs on South Korea, raising duties on products like automobiles and pharmaceuticals to 25 percent if the investment bill faced delays. The bill is anticipated to pass this week, as political parties in South Korea have agreed to expedite its approval in the national interest.
The purpose of Kim's visit was to address uncertainties surrounding U.S. tariff policies after the Supreme Court invalidated Trump's reciprocal tariffs. Consequently, the Trump administration started enforcing a 10 percent "global tariff" under Section 122, with the possibility of increasing it to 15 percent. Kim reported having discussions with U.S. officials to ensure South Korea is not unfairly treated compared to other nations.
Additionally, Kim addressed a petition by U.S. investors in Coupang Inc., seeking a Section 301 investigation. He explained to Lutnick that the issue was a domestic legal matter related to a data breach, and both parties reached a mutual understanding.
Regarding a proposed oil price cap system, Kim stated that preparations are nearly complete, and the government will act based on market conditions to implement the system promptly if necessary. Trade Minister Yeo Han-koo also returned from the U.S. after discussing tariff and non-tariff matters with U.S. Trade Representative Jamieson Greer. Both sides agreed that holding a joint committee meeting under the South Korea-U.S. free trade agreement would help stabilize the trade environment.
Source: Yonhap News Agency