Views are split on the South Korea–U.S. trade talks between President Lee Jae-myung and U.S. President Donald Trump. While Lee said there are still sticking points and described the talks as "in a deadlock," Trump said a deal is "very close." The remarks reflect the two countries' differing expectations for the negotiations, and some observers say it appears unlikely that a final text will be produced at the South Korea–U.S. summit to be held on the sidelines of the Asia-Pacific Economic Cooperation (APEC) meetings.
In an interview with Bloomberg News released on the 26th local time, Lee said regarding the South Korea–U.S. trade talks, "Discussions between the two countries on the main points are still at an impasse," adding, "The mode and amount of investment, the timetable, how we share losses and divide dividends — all of this remains in dispute."
Lee also said, "Talks are ongoing, and although there are some differences in views, a delay does not necessarily mean failure," adding, "Because Korea is an ally and friend of the United States, we believe — and must — reach a reasonable outcome that everyone can accept."
Lee's remarks are interpreted to mean that the makeup and implementation plan of the $350 billion investment package for the United States proposed by Korea have not been agreed upon, and that it will be difficult to draw up a final agreement at the South Korea–U.S. summit held on the sidelines of the Asia-Pacific Economic Cooperation (APEC) meetings.
Choi Seok-young, head of the International Trade Institute at Lee & Ko and a former Ministry of Foreign Affairs ambassador for economic affairs, said, "Lee's remarks indicate that it is difficult for Korea to accept what the United States is currently demanding," adding, "I see it as impossible for South Korea and the United States to resolve the current deadlock in just a few days before the summit. The United States will not change what it has been demanding overnight."
In diplomatic circles, some also say Lee is using a "salami-style delay tactic" to secure even one more national interest at the final stage of the trade talks. The salami tactic, derived from slicing the Italian ham salami thinly, refers to a strategy of breaking a big goal into small pieces and achieving them gradually. It is a step-by-step method of reaping gains without the other side noticing, and was also a strategy North Korea used in its nuclear talks.
A diplomatic source said, "Like a ko fight exchanging ko threats before a decisive endgame in baduk, the final phase of the trade talks will see negotiations to exchange the two countries' cards and divide the gains," adding, "Given that the talks began on a tilted playing field, we need to take a long view and attend to the fine details to secure Korea's interests one by one."
By contrast, Trump voiced optimism during a briefing on his presidential jet en route from the United States to Malaysia, saying, "A deal (on the South Korea–U.S. trade talks) is very close," and, "If they are ready, I am ready."
Some interpret Trump's remarks as reflecting a political aim to build a domestic image as a "president skilled at making deals." There is also analysis that it is Trump's characteristic rhetoric aiming for the "Pygmalion effect," in which expectations are realized through a self-fulfilling prophecy.
On the 27th local time, aboard the presidential jet from Malaysia to Japan, Trump answered "No, I don't think so" when asked by reporters whether there was a problem (snag) regarding the South Korea–U.S. tariff talks.
Scott Bessent, the U.S. Treasury Secretary who was present, said, "The overall big-picture framework is complete, and what remains is fine-tuning at the level of crossing the letter 't' and dotting the 'i'," adding, "It is a very complex negotiation, but we are very close (to a deal)." However, Minister Bessent drew a line on the possibility that the tariff talks would be concluded at this South Korea–U.S. summit, saying, "I think not quite."
Director Choi said, "President Trump tends to speak by presuming what he asserts in advance. He was expressing his wish," adding, "At the same time, it shows that the U.S. position remains unchanged." He continued, "In the end, both Korea and the United States hinted that it is difficult to accept each other's demands," and added, "Rather than rushing to conclude talks that were buttoned wrong from the start, we should manage them as well as possible."