Tariff deal offers framework, but sticking points remain ahead of Korea-US summit

U.S. President Donald Trump gestures as he walks to Marine One on the South Lawn of the White House in Washington, Friday. Yonhap-EPA

As President Lee Jae Myung prepares to meet U.S. President Donald Trump in Washington later this month, unresolved economic issues remain a significant part of the agenda, highlighting the complexity of the Korea-U.S. trade relationship in the wake of the recently announced tariff agreement.

Seoul and Washington on Wednesday announced a sweeping tariff agreement centered on a $450 billion investment and purchasing package, following months of protracted negotiations. Under the deal, Korea pledged $350 billion in investments and $100 billion in purchases of U.S. goods in exchange for a reduction in American tariffs on Korean products — including a cut on newly imposed duties from 25 percent to 15 percent and a similar rollback on automotive tariffs.

Despite the agreement, officials cautioned that the deal outlines a broad framework rather than a finalized settlement.

Key issues — particularly nontariff barriers affecting agricultural goods, digital services and other sectors — remain vague and unresolved. Experts warn that the Trump administration is likely to push Korea for further concessions on these fronts, including contentious areas such as online platform regulations and export controls on sensitive technologies.

Government officials have emphasized that sensitive agricultural sectors, including rice and beef, remain off-limits and were excluded from the agreement. Deputy Prime Minister Koo Yun-cheol dismissed U.S. calls to open Korea’s rice market as politically charged rhetoric aimed at American voters. Korean negotiators warned that revisiting these sectors could trigger domestic backlash and erode bipartisan support for the deal at home.

Still, the U.S. administration has publicly claimed that Korea agreed to historic openings on automotive and agricultural imports — a characterization Korean officials dispute, highlighting a significant communication gap that could complicate upcoming negotiations.

Sejong University professor Kim Dae-jong, a prominent expert on U.S. trade relations, noted that the agreement effectively undermines the existing Korea-U.S. Free Trade Agreement (KORUS FTA). The pact took effect in 2012 and has since served as a cornerstone of bilateral economic relations.

“Unlike Japan, which had no FTA with the U.S., Korea already enjoyed duty-free access. The imposition of a 15 percent tariff on Korean exports amounts to dismantling the core benefits of the FTA,” Kim said. “It’s regrettable that Korea is now subject to tariffs where previously there were none.”

He also warned that the summit could bring additional pressure from the U.S. on nontariff barriers.

“While the Korean government says it has protected markets like rice and beef, the U.S. claims those issues are settled. We’re likely to see clearer outlines of the deal and new demands that emerge during the summit,” Kim said. “Given that Japan opened up 75 percent of its rice market, there is a real possibility Korea may be pushed to expand market access for rice and beef.”

Amid mounting pressure from the Trump administration, Japan agreed to open its highly protected rice market to more American imports. The move came as part of a new trade deal that also included reductions in tariffs on Japanese cars and other goods.

The upcoming Lee-Trump summit is expected to revisit these unresolved economic issues, alongside broader discussions on alliance modernization and defense cost-sharing. Trump has publicly referenced “a large sum of money” related to Korean investments in the U.S., but details remain unclear, fueling speculation over investment commitments and tariff negotiations.

The summit will also address security cooperation, including discussions of Korea increasing defense cost contributions and the potential repositioning of U.S. forces stationed on the Korean Peninsula as part of a new alliance framework.