Seoul: Finance Minister Koo Yun-cheol announced that South Korea will "actively" explain its commitment to the United States regarding the implementation of their trade agreement. This comes amidst renewed concerns over potential tariff hikes by the U.S.
According to Yonhap News Agency, Koo's remarks followed an announcement by U.S. President Donald Trump, who plans to increase tariffs on South Korea to 25 percent from the current 15 percent. The increase is attributed to delays in Seoul's legislative process concerning the trade agreement.
Koo emphasized that South Korea will maintain close communication and cooperation with the National Assembly while actively engaging with the U.S. to demonstrate its commitment to the tariff agreement. This statement was made during a meeting of economy-related ministers.
The trade deal, finalized months after being struck in late July, requires Seoul to invest US$350 billion in the U.S. In exchange, the U.S. agreed to lower reciprocal tariffs and duties on autos, lumber, and pharmaceuticals to 15 percent from 25 percent.
Currently, the South Korean government is seeking to pass a special bill to promote investment in the U.S., which is still pending in parliament. Koo mentioned that a request for cooperation regarding this bill has been made to the National Assembly.
In a subsequent development, Trump expressed optimism about finding a resolution to the tariff issue, stating, "We will work something out with South Korea," during a press availability at the White House.