The People Power Party assessed that the reduction of the reciprocal tariff on U.S. imports from 25% to 15%, effective from the 1st of next month, is appropriate. However, it noted that there are areas of concern regarding the tariff rate on automobiles, the excessive investment in the U.S., and the opening of agricultural and livestock products.
Song Eon-seok, Chairperson and floor leader of the People Power Party, said during a meeting of the emergency response committee held at the National Assembly on the 31st, that there was news of an agreement on the tariff negotiations. He noted that the efforts of the government negotiation team and private diplomats such as Lee Jae-young, chairman of Samsung Electronics, and Chung Eui-sun, chairman of Hyundai Motor Group, must have been significant.
Chairperson Song indicated that the U.S. reciprocal tariff is at a level similar to that of Japan and the European Union (EU), but he pointed out concerns. Specifically, he mentioned the potential increases in the tariff rate on automobiles, the investment in the U.S. reaching $450 billion (about 625 trillion won), and the unclear status of agricultural and livestock product openings.
Chairperson Song stated that South Korea had a zero tariff rate on U.S. automobiles through free trade agreements (FTAs), while Japan had a 2.5% tariff. He expressed concern that if a uniform tariff rate of 15% is applied, the competitiveness of Japanese cars may relatively increase.
He further explained, "Due to the urgency of the negotiation deadline, many concessions were made. We are in a situation where an investment of $350 billion in the U.S. and $100 billion for purchases of natural liquefied gas (LNG) and other energy sources, totaling $450 billion, is required," stating that this amount exceeds Korea's foreign exchange reserves.
Chairperson Song also said, "The government announced that there would be no additional openings for agricultural and livestock products, including rice and beef; however, President Trump's message included agricultural products and even stated that the tariff would be zero. I hope it will be clearly revealed whether there will be a significant expansion in the import of other grains or fruits beyond rice and beef."
He emphasized, "Lastly, a concerning point is that it was announced that the tariff negotiations have been concluded, but in two weeks, President Lee Jae-myung will visit the U.S. for a summit with President Trump, where the final agreement will be announced. It needs to be clarified whether there are any remaining issues not yet disclosed to the public."