Minister Kim Jung-kwan of the Ministry of Trade, Industry and Resources said at a press briefing on the 9th, "It has been two weeks since President Donald Trump said he would raise the tariff rate on Korean-made automobiles and other items from 15% to 25%, yet the related notice has not been published in the U.S. Federal Register," adding, "I think there is an aspect in which the government's efforts have been conveyed to the United States." He also said Howard Lutnick, the U.S. commerce secretary, favorably evaluated the ruling and opposition parties' agreement to pass the Special Act on Investment in the United States in early March.
Earlier, on the 26th (local time), President Trump wrote on his social media that "the Korean legislature is not honoring the agreement between Korea and the United States," adding, "Accordingly, we are raising tariffs on automobiles, lumber, pharmaceuticals and all other reciprocal items from 15% to 25%." In practice, to raise tariffs on trading partners, the measure must be published in the U.S. Federal Register, but those follow-up procedures have not moved forward.
The Minister said, "Publication in the register usually takes about three to seven days, so the fact that two weeks have passed suggests that our government's explanations of its efforts so far have, in some respects, been conveyed to the U.S." He added, "Lutnick, the commerce secretary, also highly evaluated the ruling and opposition parties' decision to handle the Special Act on Investment in the United States by early March."
However, because the United States may use bilateral economic pending issues—such as the matter of alleged discrimination against Coupang—as leverage in this round of talks, it is uncertain whether the Korean government can ultimately persuade Washington to withdraw the reimposition of tariffs. The Minister said, "While the cause itself (for the decision to reimpose tariffs) is the delay in passing the special law, I understand the situation as one where, piling on, they are raising issues about aspects related to Korea that they find unsatisfactory." The Minister did not rule out the possibility that negotiations with the United States could turn into a protracted battle.
The Minister met twice with Secretary Lutnick in the United States on the 29th and 30th of last month. The meeting had reportedly been scheduled even before President Trump announced the tariff hike. At the meeting, the Minister explained why the National Assembly had delayed action on the Special Act on Investment in the United States. The Minister said, "I explained that this is not an issue of Korea intentionally lagging investment behind Japan or neglecting (its work)."
The Minister also said that, regarding the first project for investment in the United States, Korea and the United States are discussing several options. The Minister said, "On nuclear power, there had been discussions about possibilities in various areas even before the (Korea-U.S. investment talks)," adding, "We did not discuss any single, specific project."