Trump says US, South Korea will find tariff solution
His remarks sparked optimism that Seoul and Washington could reopen talks, easing renewed trade tensions through dialogue soon.
Washington signalled a possible easing of tensions with a key Asian ally after US President Donald Trump said his administration would work “something” out with South Korea, even as trade frictions between the two countries have resurfaced.
Speaking during a press availability at the White House, Trump struck a cautiously conciliatory tone when asked about the possibility of raising tariffs on South Korea. “We will work something out with South Korea,” he said, offering a brief but notable reassurance after days of uncertainty sparked by his earlier comments on trade penalties.
The remark raised hopes in Seoul and Washington that negotiations could resume soon to defuse renewed trade tensions. South Korea’s Industry Minister Kim Jung-kwan is expected to visit the United States shortly for talks with Commerce Secretary Howard Lutnick, according to Yonhap News Agency. The planned visit is seen as a crucial opportunity to stabilise relations and clarify the future of the bilateral trade agreement.
Earlier this week, Trump surprised markets and policymakers by announcing plans to raise so-called “reciprocal” tariffs and impose additional duties on automobiles, lumber, and pharmaceuticals imported from South Korea. The proposed move would increase tariffs to 25 percent from the current 15 percent, a sharp escalation that immediately drew concern in Seoul.
Trump justified the threat by pointing to what he described as delays in South Korea’s legislative procedures needed to support the full implementation of the trade deal. His comments suggested growing frustration within the administration over what it sees as Seoul’s slow progress in meeting its commitments.
On Tuesday, a White House official reinforced that message, telling Yonhap News Agency that South Korea had made “no progress” on fulfilling its end of the bilateral trade agreement. The official noted that while Trump had lowered tariffs in line with the deal, Washington expected tangible steps from Seoul in return.
The trade agreement, struck in late July and finalised months later, was positioned as a major reset in US–South Korea economic ties. Under its terms, Seoul committed to investing $350 billion in the United States across various sectors, alongside other pledges. In exchange, Washington agreed to reduce “reciprocal” tariffs from 25 percent to 15 percent, offering South Korean exporters significant relief.
However, concerns have been growing in Washington about whether South Korea can deliver on these promises under current conditions. One key issue is the weakness of the Korean won against the US dollar, which could complicate Seoul’s ability to meet its large investment commitments. Currency pressures have already strained South Korea’s economy, adding to the political sensitivity of increased overseas spending.
Trade tensions have also been fuelled by regulatory disputes. US officials are watching closely South Korea’s ongoing investigation into Coupang Inc., a US-listed e-commerce giant, over a major customer data leak. Washington has also raised concerns about Seoul’s broader moves to tighten regulations on online platform companies, steps that American officials fear could disproportionately affect US firms operating in the country.
Against this backdrop, Trump’s statement that the two sides would “work something out” was widely interpreted as an opening for dialogue rather than an immediate escalation. Analysts say the remark suggests the administration may be using tariff threats as leverage to push negotiations forward, rather than signalling a definitive policy shift.
In Seoul, the comments were met with cautious optimism. Officials there are keen to avoid a trade confrontation with their most important security ally, especially at a time of regional uncertainty and global economic volatility. South Korea’s government has repeatedly stressed its commitment to the trade deal, while also highlighting domestic political and economic constraints.
Much now depends on the upcoming talks between South Korean and US officials. Diplomats and trade experts say both sides have strong incentives to compromise: Washington wants clearer guarantees on investment and regulatory issues, while Seoul is eager to protect its exporters and maintain stable access to the US market.
For now, Trump’s brief reassurance has eased immediate fears of a sudden tariff hike. But with underlying disagreements still unresolved, the coming weeks are likely to be critical in determining whether the US and South Korea can truly bridge their differences — or whether trade tensions will once again take centre stage in a relationship that has long balanced strategic alliance with economic rivalry.