U.S. Treasury Minister Scott Bessent made clear that a trade deal with Korea will not be in effect until the National Assembly approves the U.S.-Korea trade agreement. He also suggested that U.S. President Donald Trump's stated plan to raise tariffs on Korea is a means to pressure Korea's legislative process.
Minister Bessent said in a CNBC interview on the 28th (local time), "Because the Korean National Assembly has not passed the trade agreement, there is no trade agreement with Korea until they approve it." Asked whether President Trump's declaration of a tariff hike was a pressure measure on Korea, he stressed, "(The Trump administration's signal is) to sign the trade agreement."
When the host asked, "Until parliamentary approval, will Korea be subject to a 25% tariff?" Minister Bessent avoided a direct answer but said, "I think this helps move the situation forward." This is interpreted as expressing the expectation that pressure to raise tariffs will spur the National Assembly to pass the Special Act on Investment in the United States.
Earlier, on the 26th, President Trump said on Truth Social, "Because Korea's legislature has not legislated the historic trade agreement, we will raise all reciprocal tariffs, including on automobiles, lumber and pharmaceuticals, from 15% to 25%." However, the next day he said he would work out a solution with Korea, leaving room for adjustment through consultations.
So far, no concrete steps such as an executive order or publication in the Federal Register have been taken to implement the tariff hike. Minister Kim Jung-kwan of the Ministry of Trade, Industry and Resources will travel from Canada to the United States late tonight to meet in Washington, D.C., with U.S. Commerce Secretary Howard Lutnick and others to understand the U.S. position and explain Korea's situation.
Meanwhile, Minister Bessent, regarding the U.S. economic outlook, emphasized, "High growth is possible this year as well, and we can grow without inflation." He explained, "The cause of inflation is supply constraints, and we are expanding supply through deregulation policies."
On the Federal Reserve (Fed), he said, "There are quite a few people on the Fed Board who had the wrong idea about inflation," adding, "I hope they will look at the situation with an open mind over the next few months." On the recent weakness of the dollar, he predicted, "The United States always maintains a strong-dollar policy, and if we reduce the trade deficit, over time it will lead to a stronger dollar."
Minister Bessent also continued his criticism toward Europe while mentioning the European Union (EU) and India's free trade agreement (FTA). He noted, "Europe is on the front lines of the Ukraine-Russia war, yet it is importing refined products from India, which buys Russian crude," adding, "In the end, Europe is effectively funding a war against itself."