Seoul: South Korea's proposed passage of a special bill to support the country's significant investment commitment to the United States is anticipated to prevent U.S. President Donald Trump's tariff threat from materializing, the industry minister announced Monday, committing to continued efforts to counter Washington's trade pressure.
According to Yonhap News Agency, Industry Minister Kim Jung-kwan emphasized the urgency of moving the special U.S. investment bill through the parliament swiftly, as it aligns with what Trump considers crucial. Kim's statement came during a press briefing held a week after his visit to Washington for tariff consultations.
The U.S. administration cited the delay in the legislation of the special bill as a reason for raising tariffs. Minister Kim expressed belief that the bill's passage could lead to the suspension of plans to increase tariffs on Korean products, aiming to maintain them at the existing 15 percent level to protect national interests.
Minister Kim's trip to Washington followed Trump's social media announcement of raising "reciprocal" tariffs and auto tariffs on Korea back to 25 percent, due to the legislative process delay in implementing the trade deal finalized in October between the two countries.
During his visit, Kim met with U.S. Commerce Secretary Howard Lutnick, Energy Secretary Chris Wright, and other officials, resolving "unnecessary misunderstandings" between the two nations. He noted that Washington expected Seoul to have made progress on U.S. investment plans by December, following a memorandum of understanding signed in November, but was disappointed with the legislative delay.
Kim highlighted that Washington compared Korea's progress with Japan's, which has been quicker in selecting U.S. investment projects as it does not require a similar bill. He conveyed confidence in successfully communicating Korea's efforts to uphold the trade deal, noting no further actions from the U.S. post-Trump's announcement and Lutnick's positive assessment of Korea's legislative intentions.
Earlier in the day, the National Assembly established a special committee to handle the bill's legislation. The minister also mentioned ongoing discussions with the U.S. on potential projects under the bilateral trade deal, without providing project specifics.