Washington: U.S. President Donald Trump's renewed threat to impose tariffs on South Korea has raised concerns about Washington's commitment to its bilateral trade deal with the nation. Experts suggest that the move might be a negotiating tactic to extract more concessions from South Korea.
According to Yonhap News Agency, experts have advised Seoul to respond "calmly" to the tariff announcement to maintain the trade deal's progress. Trump's proposal to increase "reciprocal" tariffs and auto duties on South Korea to 25 percent from 15 percent came unexpectedly, citing delays in South Korea's legislative processes supporting the trade agreement.
The announcement has led to confusion among policymakers in Seoul, prompting an emergency interagency meeting and the dispatch of Industry Minister Kim Jung-kwan to Washington for discussions with U.S. Commerce Secretary Howard Lutnick. Economic policy analyst Tom Ramage from the Korea Economic Institute of America suggested that Trump's announcement could be a negotiation strategy to bring South Korea back to the table for additional concessions.
Rob Rapson, former acting U.S. ambassador to South Korea, emphasized the importance of a "pragmatic" response from South Korea's administration to Trump's tariff threat. Despite the unsettling nature of Trump's move, Rapson advised engaging "coolly and calmly" with the U.S. to sustain the trade deal.
The sudden tariff announcement has disrupted the positive atmosphere of alliance cooperation, which had gained momentum with South Korea's commitment to increase its defense spending. U.S. Under Secretary of Defense Elbridge Colby praised South Korea as a "model ally" during his visit to Seoul this week, only to have Trump's tariff threat undermine that sentiment.
Patrick Cronin, chair for Asia-Pacific security at the Hudson Institute, characterized Trump's foreign policy as "brutal transactionalism," aiming to secure better deals for U.S. industries. Although this approach maximizes leverage, it can also push allies towards other powers, including China.
Analysts pointed to multiple factors that might have influenced Trump's tariff announcement, including concerns over South Korea's investigation into Coupang Inc. and the country's regulatory moves on online platforms. Additionally, the Korean currency's weakness and its potential impact on South Korea's investment pledge to the U.S. were also highlighted.
The announcement has injected uncertainty into the bilateral relationship, with Trump's tariff threats raising questions about the U.S.'s adherence to its trade commitments. Observers hope that Trump might withdraw the tariff threat as South Korea strives to address his concerns, especially as the Supreme Court deliberates on the legality of his tariff actions under the 1977 International Emergency Economic Powers Act.