Trump's Tariff Ultimatum Forces South Korea Back to Negotiating Table
WASHINGTON — High-stakes trade talks between the United States and South Korea concluded Thursday without a resolution, setting the stage for another round of negotiations Friday. The urgency follows a blunt warning from former President Donald Trump to reimpose tariffs of up to 25% on key Korean imports if Seoul does not accelerate the implementation of last year's bilateral trade pact.
Industry Minister Kim Jung-kwan met with US Commerce Secretary Howard Lutnick, reaffirming Korea's commitment to fulfill investment pledges made under the agreement. A central point of contention is the delayed passage of domestic Korean legislation, known as the Special Law on Strategic Investment with the US, designed to streamline and encourage Korean investment in American industries.
"The tariff threat appears to be a pressure tactic, not a rejection of the deal itself," said a senior Seoul official, speaking on condition of anonymity. "The US message is clear: move faster." The potential tariffs would target automobiles, timber, and pharmaceuticals—sectors critical to Korea's export economy.
The dispute introduces fresh strain into the alliance, coinciding with other sensitive issues. Washington recently signaled a potential shift in its defense posture toward North Korea, while keeping South Korea on a currency monitoring list. Simultaneously, a Korean probe into a data breach at US-listed e-commerce giant Coupang Inc. has drawn scrutiny, though officials from both sides insist the investigation is unrelated to the trade friction.
As ministers shuttle between capitals to defuse tensions, the business community watches nervously. "The specter of tariffs from a potential future Trump administration is being used as a live bargaining chip today," said Marcus Thorne, a trade policy analyst at the Global Strategic Institute. "It underscores how past trade agreements are being continuously re-litigated, creating persistent uncertainty for supply chains."
Voices & Reaction
Eleanor Vance, Senior Fellow at the East Asia Trade Council: "This is a predictable growing pain in renegotiating the terms of the alliance. Korea's legislative process is methodical, but the US demand for speed reflects a broader impatience with traditional diplomacy. Friday's talks will be crucial to finding a face-saving compromise."
David Park, Small Business Owner (Auto Parts Exporter) in Busan: "We're being used as pawns. Our company survived the last round of trade wars, and now we're facing the same threats again? It feels like our government's compliance is never enough. This volatility makes long-term planning impossible."
Professor Aisha Chen, Georgetown University School of Foreign Service: "The linkage—however denied—to the Coupang probe is hard to ignore. It creates a perception of mixed signals: cooperation on security versus confrontation on trade and regulatory matters. This complicates Seoul's calculus significantly."
Jimmy O'Malley, Former Steelworker & Political Commentator in Ohio: "Good. Maybe now they'll actually follow through. We heard all these promises about investments and jobs last year. Where are they? If it takes a tariff threat to get our allies to honor a deal, then so be it. America First shouldn't be an empty slogan."
The outcome of Friday's follow-up meeting between trade ministers is now pivotal. Failure to demonstrate tangible progress risks not only the imposition of tariffs but also casting a shadow over the broader economic and strategic partnership between the two allies.