Seoul: South Korea will convey its commitment to the United States to implementing its trade deal with Washington and respond calmly to U.S. President Donald Trump's announcement to raise tariffs on the Asian ally, Cheong Wa Dae said Tuesday. National Security Adviser Wi Sung-lac and Kim Yong-beom, the presidential chief of staff for policy, co-chaired an interagency meeting to discuss response measures after Trump made a surprise announcement to raise "reciprocal" tariffs and auto duties on South Korea to 25 percent from 15 percent, citing Seoul's lack of progress in the legislative process to implement the deal finalized in October.
According to Yonhap News Agency, the presidential spokesperson Kang Yu-jung stated in a written briefing that the South Korean government will convey its commitment to implementing the deal to the U.S. side. Kang noted that the tariff hike would take effect only after administrative procedures, such as a Federal Register notice, and emphasized that the government will respond calmly to Trump's announced tariff hike. Cheong Wa Dae also mentioned that it has not received an official notice or explanation over the proposed tariff hike from the U.S. government.
In a bid to address the situation, Industry Minister Kim Jung-kwan, who is currently in Canada, will visit the U.S. for talks with U.S. Commerce Secretary Howard Lutnick. Trade Minister Yeo Han-koo also plans to visit the U.S. soon for consultations with Jamieson Greer, head of the Office of the United States Trade Representative, as stated by Cheong Wa Dae.
Trump's claim that the South Korean legislature was not "living up to" the trade deal was apparently referring to a special investment bill currently pending at the National Assembly. This bill, submitted by the ruling Democratic Party in November, aims to support the country's $350 billion investment pledge to the U.S. In response, the Democratic Party held consultations with government officials and said it will review the bill and put it to a vote next month, calling for bipartisan support from the main opposition People Power Party for its passage.
Additionally, a letter sent by James Heller, charge d'affaires ad interim at the U.S. Embassy in Seoul to Science Minister Bae Kyung-hoon, earlier this month, was clarified by Lee's office as not being directly related to the proposed tariff hike. The letter primarily urged South Korea not to discriminate against U.S. companies concerning digital-related issues. Cheong Wa Dae highlighted that the government has explained through various channels that South Korea's regulations and legislation do not discriminate against foreign firms.
Trade experts suggest that Korea's recent push for digital regulations, including an ongoing probe into U.S.-listed e-commerce giant Coupang Inc.'s massive data leakage incident, might have influenced Trump's decision. U.S. lawmakers and investors have labeled the investigation into Coupang as "discriminatory," while the State Department expressed "significant concerns" last month over Seoul's regulatory moves that could affect online platform businesses.