Washington: A White House official stated that South Korea has made "no progress" in fulfilling its obligations under a bilateral trade agreement, despite U.S. President Donald Trump having reduced tariffs on the Asian nation. The official's comments come a day after Trump announced an increase in "reciprocal" tariffs and auto duties on South Korea, raising them to 25 percent from 15 percent. This decision was made in response to delays in South Korea's legislative processes related to the trade deal's implementation.

According to Yonhap News Agency, the official emphasized that South Korea had reached an agreement with the Trump administration to secure lower tariffs. However, the Koreans have not advanced in meeting their commitments under the agreement. This situation has led to confusion among policymakers in Seoul, prompting the urgent dispatch of Industry Minister Kim Jung-kwan from Canada to Washington for discussions with U.S. Commerce Secretary Howard Lutnick.

The trade agreement, finalized months after being struck in late July, included a pledge from Seoul to invest US$350 billion in the United States in exchange for the reduction of "reciprocal" tariffs to 15 percent from 25 percent. Trump's sudden decision to increase tariffs has been linked to concerns in Washington over South Korea's investigation into Coupang Inc., a U.S.-listed company, regarding a substantial customer data leak. Additionally, there are apprehensions about South Korea's efforts to regulate online platform companies and the potential impact of the Korean currency's weakness on their investment commitments.