ED Trump's tariff remonstrations
U.S. President Donald Trump points during a rally in Clive, Iowa, Jan. 27. AP
Seoul must fully grasp the unpredictability of its ally's leader
The unexpected, blustering wording from U.S. President Donald Trump on raising the tariffs on South Korean imports to 25 percent, and not the 15 percent agreed to last year, was replaced with "we'll work something out with South Korea." His commerce secretary, Howard Lutnick, said he will be meeting with senior Korean officials, including Trade Minister Kim Jung-kwan.
Unpredictability is the name of the game for the U.S. president, yet the latest incident has reached another level. Trump claimed that Korea's National Assembly was not "living up" to the trade deal. Korea and the United States reached an agreement last October during a bilateral meeting in Gyeongju, North Gyeongsang Province, that was finalized into a joint fact sheet afterward. The facts of the trade deal were that the U.S. would levy a 15 percent tariff on Korean imports, including automobiles, and Korea would invest $350 billion in the United States. The related law was proposed in the Assembly on Nov. 26, 2025, and is awaiting approval. The U.S. has been implementing the 15 percent tariff retroactively since Nov. 1, in accordance with the trade agreement.
Seoul has been cautious in interpreting Trump's strongly worded message, but is mainly taking it to mean he wants the U.S. investment done quicker. With the U.S. courts set to decide soon on the legality of Trump's tariffs, and the U.S. midterm elections happening in November, there are reasons behind Trump's pressure. It would be risky to not take his words seriously.
The U.S.' willingness to renege on an international tariff agreement with Korea does not bode well, as it undermines trust in the U.S. as a reliable trade partner. Surely those in Washington are aware of the scrutiny on how Seoul and Washington will resolve the matter.
The Korean government was scrambling for much of Tuesday, holding emergency meetings as Deputy Prime Minister and Minister of Finance Koo Yun-cheol visited the National Assembly to request the bill's approval. The National Assembly said that the bill was following due process, and is likely to be approved in late February at the latest. Yet, we have to question what — other than Trump's unpredictability — has kept Seoul officials in the dark, especially as top trade negotiators continue to visit the United States. Most recently, Prime Minister Kim Min-seok announced that a hotline had been set up with the U.S. following his recent meeting with U.S. Vice President JD Vance. The two reportedly discussed the handling of e-commerce giant Coupang's massive data breach, but did Vance give no inclination of the perceived slowness of Korea's legislative process?
Also, in the absence of a U.S. ambassador to Korea, James Heller, charge d'affaires ad interim at the U.S. Embassy in Seoul, sent a letter directed to Science Minister Bae Kyung-hoon, the foreign minister and others, urging the Korean government not to "discriminate against U.S. companies in connection with digital-related issues." There is no question whether top Cabinet members acted complacently in response to the letter, even as digital issues, including those surrounding the data breach at Coupang, have been contested between Korea and the United States.
It is regrettable to have to face new tariff issues, seeing as how it took months of negotiations to reach an agreement. Some in the National Assembly have taken issue with the fact that their work, which they claim follows due process, is being questioned. Admittedly, with Korea's local elections coming up in June, much of the political arena's energy has started shifting toward those battles. As unpleasant as it is, the administration must now reprioritize tasks to ensure that the tariff agreement moves forward, for the mutual growth of Seoul and Washington. This may be a good time for Washington to reconsider extending a currency swap deal for Korea as well. The U.S. side should also show cordiality and goodwill in its dealings with its decadeslong ally, as befitting a creditable trade partner.