Seoul: U.S. President Donald Trump has threatened to unilaterally reverse the Korea-U.S. tariff agreement concluded in late July last year and reaffirmed by the two leaders in November. Trump posted on social media on Monday that tariffs on Korean products would be raised back to pre-agreement levels. The post said tariffs on automobiles, lumber, and pharmaceuticals would increase from 15 percent to 25 percent. Overturning an agreement reached through lengthy negotiations via official government channels without prior explanation, and doing so on social media, raises serious ethical and diplomatic concerns. Although no timeline was specified, Korea's stock market was briefly rattled on Tuesday, with auto-related shares leading a sharp intraday drop.
According to Yonhap News Agency, Trump claimed that the Korean National Assembly had failed to complete the legal procedures required to implement the bilateral trade deal, but the move is widely seen as a sudden action aimed at a domestic U.S. audience. With a U.S. Supreme Court ruling on the legality of reciprocal tariffs expected soon, Trump may have sought to pressure Korea into quickly demonstrating visible results in U.S.-bound investment. While there are domestic disagreements over a special law on investment in the United States that remains pending in parliament, the bill serves as the legal basis for that investment. The two countries have already agreed to begin $20 billion in annual Korean investment in the United States this year, making the passage of the bill itself largely a foregone conclusion. Trump's tariff pressure is inappropriate in that it excessively interferes with the lawful domestic legislative process of an ally.
Still, it is difficult to ignore concerns that Trump's abrupt tariff reversal has exposed not only cracks in Korea-U.S. communication but also complacency in the Korean government's response. Prime Minister Kim Min-seok, who recently visited Washington and met Vice President JD Vance, highlighted the establishment of a "hotline" with the United States as a diplomatic achievement. Did Kim fail to grasp the seriousness of dissatisfaction within the Trump administration over Korea's implementation of the tariff agreement? Two weeks earlier, the United States reportedly sent Seoul a letter urging compliance with a provision in the agreement on nondiscrimination against U.S. Big Tech companies. Although the letter, sent by the acting U.S. ambassador to Korea, did not address the special investment law, it was a clear formal expression of U.S. grievances. Seoul should have recognized the warning signs and responded more proactively.
At a New Year's press conference, President Lee Jae Myung said of U.S. pressure over semiconductor tariffs that reacting emotionally makes it hard to stay centered, and that responses should be guided by established policies and principles. That approach remains valid. Yet as the latest tariff turmoil shows, Korea must avoid a downward spiral of mistrust and misunderstanding with the United States. Frictions are also emerging over issues such as the Coupang case and digital regulation. The government must first accurately assess U.S. intentions and respond with careful, well-calibrated measures grounded in national interest. The National Assembly, too, should halt partisan conflict and cooperate actively with the government.