Washington: A White House official stated on Tuesday that South Korea has made "no progress" in fulfilling its obligations under a bilateral trade agreement, despite U.S. President Donald Trump's decision to lower tariffs on the Asian nation.
According to Yonhap News Agency, the official's comments came a day after Trump announced an increase in "reciprocal" tariffs and auto duties on South Korea and other countries, raising them to 25 percent from 15 percent. This decision was attributed to delays in South Korea's legislative processes supporting the trade deal's implementation.
The official remarked, "The simple reality is that South Korea reached a deal with the Trump administration to secure lower tariffs. While the president lowered tariffs on Korea, the Koreans have made no progress on fulfilling their end of the bargain."
Trump's unexpected tariff increase has caused confusion among policymakers in Seoul, leading to a swift response from Industry Minister Kim Jung-kwan, who was in Canada at the time. He was promptly dispatched to Washington to engage in discussions with U.S. Commerce Secretary Howard Lutnick.
The trade agreement, initially struck in late July and finalized months later, included a commitment from Seoul to invest US$350 billion in the United States, among other pledges, in exchange for Washington's reduction of "reciprocal" tariffs from 25 percent to 15 percent.
The move to increase tariffs comes amid Washington's concerns over South Korea's ongoing investigation into Coupang Inc., a U.S.-listed company, following a significant customer data leak, as well as the Asian country's efforts to regulate online platform companies. Additionally, there are worries that the weakening Korean currency could hinder South Korea's ability to meet its investment commitments.
Republicans on the House Judiciary Committee have commented on Trump's tariff announcement, seemingly linking it to South Korea's handling of the Coupang case. "This is what happens when you unfairly target American companies like Coupang," they stated on X.
The Seoul government is currently investigating the data leak incident involving Coupang, which is believed to have affected approximately 33.7 million customers. The company, however, claims that only around 3,000 accounts were accessed by the perpetrator.