Tariff deal hindered by ‘excessive US demands’: source

Containers are stacked at Pyeongtaek Port in Gyeonggi Province, Wednesday, two days before the U.S.' planned imposition of reciprocal tariffs on Korean goods. Yonhap

The ongoing trade negotiations with the U.S. are facing headwinds, as American demands have emerged as difficult to accommodate, a source familiar with the discussions said Wednesday.

The explanation comes as top Korean government officials, including Deputy Prime Minister and Finance Minister Koo Yun-cheol, engage in last-minute talks with their counterparts in Washington ahead of the Donald Trump administration’s planned imposition of a 25 percent “reciprocal” tariff on Korean products, expected for Aug. 1.

"The U.S. demands are proving particularly challenging," the source said, adding they are complicating efforts to reach an agreement.

The official did not specify how much investment the U.S. is requesting. With Japan and the European Union pledging investments of $550 billion and $600 billion respectively, Korea now finds itself under mounting pressure to increase its own commitments.

Bloomberg recently reported that the Korean government suggested $100 billion in investments plus additional incentives, but Commerce Secretary Howard Lutnick talked of $400 billion. The increased amount is said to be linked not to defense cost sharing but to demands for expanded Korean investment and greater U.S. agricultural exports.

Amid growing speculation, the presidential office is maintaining strict confidentiality.

“We are taking a pragmatic approach rooted in national interest,” presidential chief of staff for policy Kim Yong-beom said.

Presidential chief of staff for policy Kim Yong-beom speaks during a press briefing at the presidential office in Seoul, Wednesday. Yonhap

Responding to foreign media reports about the scale of Korea’s potential investment offer to the U.S., Kim declined to confirm any figures, citing the sensitivity and fluidity of the negotiations.

“We are negotiating based on several key principles to achieve mutually beneficial outcomes for both Korea and the U.S., within acceptable bounds,” Kim said.

“The government is fully aware of the price sensitivity in agricultural and livestock sectors, and we are proceeding with that understanding, always prioritizing national interest.”

Hyundai Motor Group Executive Chair Euisun Chung applauds during the completion ceremony of Hyundai Motor Group Metaplant America in Ellabell, Ga., March 26. Courtesy of Hyundai Motor Group

The private sector is also stepping up its support for the government’s negotiating efforts. Hyundai Motor Group Executive Chair Chung Euisun departed for the U.S. on Wednesday, becoming the third major Korean business leader to head to Washington this week, following Hanwha Group Vice Chairman Kim Dong-kwan and Samsung Electronics Executive Chairman Lee Jae-yong.

Kim traveled to Washington on Monday to advance details of the “Make American Shipbuilding Great Again” (MASGA) initiative — a proposed shipbuilding cooperation between Korea and the U.S. On Tuesday, Lee also headed to the U.S., reportedly carrying proposals for expanded semiconductor investment and advanced artificial intelligence chip collaboration.

Chung’s participation is also drawing attention, as he previously announced a $21 billion U.S. investment plan in March. That package included expanded electric vehicle production in Georgia and a new steel plant in Louisiana.

Meanwhile, U.S. President Donald Trump raised the pressure on Wednesday, saying the Aug. 1 reciprocal tariff deadline for remaining trade partners will not be extended.

“THE AUGUST FIRST DEADLINE IS THE AUGUST FIRST DEADLINE — IT STANDS STRONG, AND WILL NOT BE EXTENDED. A BIG DAY FOR AMERICA!!!” Trump posted on Truth Social.