Korean gov't says Trump's tariff threat not linked to Coupang

Foreign Minister Cho Hyun speaks during a Foreign Affairs and Unification Committee meeting at the National Assembly in Seoul, Wednesday. Yonhap

The Korean government sees U.S. President Donald Trump’s threat to raise tariffs on Korean goods as being unrelated to the controversy over Korean authorities’ investigation into Coupang or proposed online platform regulations.

Foreign Minister Cho Hyun said in a parliamentary session on Wednesday, “Based on our contacts with the U.S. Department of State following the announcement, we have concluded that it has no direct connection to Coupang or the online platform bill.”

His comments follow speculation that Trump’s sudden tariff hike threat announced on social media on Monday (local time) was linked to Korea’s push to penalize Coupang over the U.S.-listed company’s massive customer data leak or its move to regulate online platform companies, which the U.S. says could potentially result in unfair treatment for American firms.

The minister also implied the Korean government is still grappling to understand why Trump threatened to raise the tariffs from 15 percent to 25 percent.

“It is difficult to pinpoint any specific and reasonably presumed special motive … I think that is why President Trump issued follow-up messages,” he said, referring to the U.S. president's follow-up comments on Tuesday (local time) that his administration will "work something out" with Korea.

While Trump claimed he was planning to raise tariffs because Korea’s National Assembly had not yet completed the procedures necessary to implement the Korea-U.S. tariff agreement, Cho said he "clearly" believes the parliamentary process is not the issue.

He explained the ministry has made “every effort” to explain the Coupang issue to the U.S. side so that it does not escalate into a diplomatic dispute.

“Now that related companies (Coupang’s U.S. investors) have filed an investor-state dispute settlement claim, I would add that we are being extremely cautious with our words so that any remarks by our government are not later interpreted or assessed in a way that could advantage them in their litigation," Cho added.

Prime Minister Kim Min-seok, left, and U.S. Vice President JD Vance pose at the White House in Washington, Friday (local time). Courtesy of Prime Minister's Office

Despite Cho's explanation, speculation that the tariff issue is linked to a broader campaign pushing back against Seoul’s proposed online platform law and the government’s probe into Coupang’s massive data breach is not subsiding .

The conjecture is based on a letter sent about two weeks ago by James Heller, the U.S. charge d’affaires in Seoul, to Cho and other top officials, including Deputy Prime Minister and Science Minister Bae Kyung-hoon.

The Ministry of Science and ICT confirmed that the letter called on Seoul not to discriminate against U.S. companies on digital issues. Some media reports said the letter also included a request that executives of U.S. companies not face discriminatory criminal liability or travel restrictions.

The ministry declined to share the details of the letter, noting that it is not related to Trump’s claim that Seoul failed to enact the legislation needed to implement the tariff agreement.

In Washington, some Republicans have also explicitly tied Trump’s tariff threat to the Coupang issue. The House Judiciary Committee shared Trump’s Truth Social post on X, saying, “This is what happens when you unfairly target American companies like Coupang.”

Speculation increased after U.S. Vice President JD Vance allegedly raised concerns about Coupang in his recent talks with Korea’s Prime Minister Kim Min-seok in Washington last week.

The Wall Street Journal reported that Vance warned against “penalizing” the company and other U.S. tech firms and said he wants “meaningful de-escalation” of the issue.

The Korean government did not confirm the report. At the time of the meeting, Kim told reporters that he had made clear to Vance that there has been no discriminatory treatment of U.S. firms, noting Korea-U.S. relations are “far beyond the level where a single company’s lobbying could sway them.”

Seoul and Washington reached a trade deal last July, under which the United States cut tariffs, including on automobiles, from 25 percent to 15 percent. In return, Korea pledged a $350 billion investment package in the U.S.

A joint fact sheet was released in November. However, Washington has grown increasingly frustrated that the promised investments have been slow to materialize.