Trump signals tariff talks with South Korea after hike threat
Trump’s remarks eased immediate jitters in Seoul, raising expectations of talks as South Korea’s industry minister prepares to travel to Washington.
- President Trump signaled a willingness to negotiate with South Korea after threatening to raise tariffs on its exports, including automobiles, from 15% to 25%.
- The U.S. tariff threat stems from what it calls South Korea's failure to make progress on a trade agreement, under which Seoul pledged to invest $350 billion in the U.S.
- In response to the signal for dialogue, South Korea's Industry Minister is expected to travel to Washington for talks with the U.S. Commerce Secretary.
US President Donald Trump said on Tuesday (January 27) the United States would “work something out” with South Korea, signalling room for talks after he renewed threats to raise tariffs on the ally’s exports.
His comments came days after he announced plans to lift “reciprocal” tariffs and additional duties, including on automobiles, lumber and pharmaceuticals, to 25% from 15%, citing delays in South Korea’s legislative steps needed to implement a trade and investment framework agreed last year.
In Seoul, the remarks fuelled expectations of negotiations as Industry Minister Kim Jung-kwan is expected to travel to Washington for talks with US Commerce Secretary Howard Lutnick.
A White House official was quoted as saying South Korea had made “no progress” on meeting parts of the agreement, under which Seoul pledged to invest $350 billion in the United States in exchange for Washington lowering tariffs to 15% from 25%.
The revived tariff threat also comes amid US concerns over South Korea’s scrutiny of Coupang, a US-listed firm, following a major customer data leak, as well as Seoul’s push to tighten rules on online platform companies.
Reuters
