South Korea Affirms Commitment to Trade Deal Amid US Tariff Hike Threats
A presidential spokesperson explained that the proposed tariff increase would only be implemented after required administrative steps are completed and emphasized that Seoul plans to respond in a measured manner to the announcement. “The government will convey its commitment to implementing the deal to the US side,” Kang said.
Officials from the presidential office also noted that South Korea has not yet received any formal notice from Washington regarding the planned tariff hike.
A day earlier, Trump revealed his intention to impose higher tariffs on South Korean exports, accusing the country’s legislature of failing to ratify a previously negotiated trade agreement.
He said duties on products such as automobiles, lumber, and pharmaceuticals would rise from 15% to 25%.
The US president appeared to be referencing an investment-related bill that South Korea’s ruling Democratic Party is expected to review and put to a vote next month, with efforts underway to secure backing from opposition lawmakers.
In November of last year, Seoul and Washington signed a memorandum of understanding that formalized South Korea’s pledge to invest $350 billion in exchange for reduced US tariffs. Under that framework, South Korea committed to providing $200 billion through cash installments, limited to $20 billion per year, as well as $150 billion dedicated to joint shipbuilding cooperation.
In return, the United States lowered reciprocal tariffs on South Korean imports to 15%, in line with an agreement reached in July.
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