Washington: U.S. President Donald Trump announced on Tuesday that his administration plans to "work something out" with South Korea, following his earlier threat to impose increased "reciprocal" tariffs and other levies on the country. This statement has sparked hope for potential negotiations between Seoul and Washington to resolve the renewed trade tensions.
According to Yonhap News Agency, South Korea's Industry Minister Kim Jung-kwan is expected to visit the United States soon to engage in discussions with Commerce Secretary Howard Lutnick. During a press availability at the White House, Trump assured, "We will work something out with South Korea," when asked about the possibility of increasing tariffs on Korea.
On Monday, Trump unexpectedly announced a proposal to raise "reciprocal" tariffs and duties on South Korean auto, lumber, and pharmaceutical exports from 15 percent to 25 percent. This move came as a response to what he perceived as a delay in Seoul's legislative procedures related to a trade deal.
Earlier on Tuesday, a White House official informed Yonhap News Agency that South Korea had not made "progress" on meeting its obligations under the bilateral trade agreement, even though Trump had previously lowered tariffs in accordance with the deal. The agreement, finalized months after being struck in late July, required Seoul to invest US$350 billion in the United States, among other commitments, in exchange for Washington reducing "reciprocal" tariffs to 15 percent.
Trump's renewed tariff threat arises amidst U.S. concerns over South Korea's ongoing investigation into Coupang Inc., a U.S.-listed company, over a significant customer data leak. Additionally, there are worries regarding South Korea's regulatory actions towards online platform companies and the potential impact of the Korean won's weakness against the U.S. dollar on Seoul's investment commitments under the trade agreement with Washington.