U.S. Commerce Minister Howard Lutnick pressured Korea, saying he would impose a tariff if it did not sign a trade deal.
Minister Lutnick said in a CNBC interview on the 11th (local time), "Korea did not sign (the trade agreement) when the president came to the White House," adding, "Japan signed the agreement, but Korea did not. Korea should either sign, or pay the tariff." He went on to say, "This is a black-and-white choice," and repeatedly stressed, "Pay the tariff or accept the deal."
Korea and the United States have broadly agreed to cut the reciprocal tariff by 15% and for Korea to invest $350 billion, but details such as how to create and operate a U.S.-bound investment fund are still being coordinated. No agreement document has been drafted. Minister Lutnick noted, "The devil is always in the details," and pointed out, "Korea seems to be referring to the agreement with Japan, but there is no flexibility."
The remarks draw attention in tandem with the recent mass arrest and detention of Korean workers at the construction site of the Hyundai Motor–LG Energy Solution battery joint plant in Georgia. In response to related questions, Minister Lutnick said, "President Trump will resolve it," adding, "We know that experienced leadership is necessary to build a great plant, and we hope construction proceeds quickly."
Regarding President Trump's plan, he said, "He will sign separate agreements with countries that want to build factories in the United States," adding, "He will consider allowing workers from these countries to work on short-term visas and then return home." He then described this as the "ABC principle," adding, "A is coming into the United States, B is training Americans, and C is returning to the home country."