Seoul: U.S. President Donald Trump's unexpected announcement to increase tariffs on South Korea seems intended to expedite the country's investment commitment to the United States amid domestic uncertainties, experts have indicated. Earlier, Trump stated through social media that tariffs and auto duties on South Korea would rise to 25 percent from 15 percent, citing delays in Seoul's National Assembly's process to enact the bilateral trade agreement finalized in October.
According to Yonhap News Agency, Trump was alluding to a special bill introduced by Korea's ruling Democratic Party in November, supporting a US$350 billion investment pledge to the U.S. included in the tariff agreement between the two nations. The bill is pending approval from the Assembly.
Kwon Nam-hoon, president of the Korea Institute for Industrial Economics and Trade, suggested that Trump's action aims more at ensuring the passage of the special investment bill being delayed at the National Assembly, rather than genuinely increasing tariffs. He noted that with the U.S. Supreme Court potentially striking down reciprocal tariffs, Trump might be acting urgently to secure a firm commitment from Korea before further delays.
Shin Won-kyu, chief analyst at the Korea Economic Research Institute, proposed that Trump's decision could stem from broader anxieties, including criticism of his immigration policy, ambitions over Greenland, and rising tensions with the European Union and Canada. Meanwhile, trade experts noted that Korea's push for digital regulations, such as the ongoing probe into U.S.-listed e-commerce giant Coupang Inc.'s data leakage incident, might have influenced Trump's decision.
U.S. lawmakers and investors have labeled the Coupang investigation as "discriminatory," and the State Department voiced "significant concerns" last month over Seoul's regulatory actions that could impact online platform businesses. The matter was also discussed in a meeting between Korean Prime Minister Kim Min-seok and U.S. Vice President JD Vance, where they agreed to manage the issue to prevent misunderstandings between the governments, according to Seoul officials.
Yoon Heo, an economics professor at Sogang University, remarked that overturning agreed terms between countries through a social media post is undiplomatic and difficult to understand diplomatically. In response, the Seoul government stated it would closely communicate with Washington on the legislative progress of the U.S. investment bill and devise a response strategy.
Cheong Wa Dae reported that Korea has not received an official notice or explanation from the U.S. regarding Trump's tariff hike announcement. An emergency interagency meeting, led by presidential chief of staff for policy Kim Yong-beom, will soon be convened to discuss the government's response. Industry Minister Kim Jung-kwan, currently visiting Canada, is scheduled to head to Washington to discuss the issue with U.S. counterparts, with a meeting with U.S. Commerce Secretary Howard Lutnick being arranged.