Optimism is building in trade circles as President Donald Trump pledged to reach ‘some’ agreement with South Korea on contentious tariffs. His remarks dial back earlier saber-rattling, where he floated sharp duty increases on imports from the strategic partner.
In a White House exchange with journalists, Trump dismissed escalation fears, affirming a fix was in the works. This sets the stage for high-level meetings, including a prospective U.S. trip by South Korea’s Industry Minister Kim Jang-kwan to confer with Commerce Secretary Howard Lutnick.
The flare-up stems from a bilateral pact sealed post-July talks, with South Korea’s $350 billion investment commitment traded for U.S. tariff drops from 25% to 15%. Trump cited implementation delays as justification for potential reversals on vehicles, timber, and pharmaceuticals.
Official statements Tuesday highlighted Seoul’s inaction, contrasting U.S. compliance. Layered concerns encompass investigations into Coupang’s massive data exposure and e-commerce oversight, alongside currency depreciation risking investment shortfalls.
As two economic powerhouses navigate these choppy waters, Trump’s pragmatic approach may prevent broader fallout. The dispute spotlights vulnerabilities in global trade pacts amid currency volatility and regulatory divergences. Resolution here could bolster confidence in U.S. alliances across Asia.