South Korea quickly reassured the United States after President Donald Trump threatened to raise tariffs on imports. Trump accused Seoul of delaying implementation of a major trade and investment deal. The proposed increase could push tariffs to 25% from the current 15%, affecting autos, lumber, pharmaceuticals, and other goods.
Trump blamed the South Korean parliament for failing to enact the agreement reached last year. The deal promised $350 billion in South Korean investments in the US in exchange for tariff reductions. The pact also included broader trade and security cooperation and was reaffirmed during Trump’s visit to Seoul in October.
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South Korean officials said Trump’s comments came as a surprise and added pressure on the country. Seoul faces challenges managing trade, financial stability, and its alliance with the US. The presidential office and ruling party pledged to act quickly to implement the agreement and address Washington’s concerns.
The deal requires South Korea to pay $200 billion of the $350 billion in phased payments, capped at $20 billion per year. The structure is designed to limit pressure on the Korean won, as the economy remains sensitive to currency volatility. Finance Minister Koo Yun-cheol said implementation may be delayed due to uncertainty over a US Supreme Court ruling on tariffs.
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Officials emphasized that South Korea remains committed to fulfilling its obligations. They noted that rapid action is vital to maintain strong bilateral relations and economic cooperation. Efforts are ongoing to ensure the investment package proceeds while addressing both domestic and international concerns.