President Lee Jae-myung on the 17th held a phone call with U.S. President Donald Trump and discussed directions for developing South Korea-U.S. relations. According to Cheong Wa Dae, in the call with President Trump that lasted about 30 minutes from 10 p.m. that day, President Lee shared the results of the U.S.-China summit, confirmed common ground on peace on the Korean Peninsula, and discussed the smooth implementation of last year's South Korea-U.S. leaders' investment and trade agreement joint fact sheet (JFS, joint explanatory document).
After hearing from President Trump about the outcomes of the U.S.-China talks, including ▲overall U.S.-China relations ▲economic and trade agreements ▲the situation on the Korean Peninsula and in the Middle East, President Lee said, "The U.S. and Chinese leaders held constructive consultations on the Korean Peninsula issue." He also "assessed President Trump's active leadership to resolve the Middle East situation," saying that "stable management of U.S.-China relations will contribute to peace and prosperity in the Indo-Pacific region and the world," Cheong Wa Dae Spokesperson Kang Yu-jung said.
In response, President Trump said, "Going forward, based on close coordination between the South Korea-U.S. leaders, we will play the necessary roles and make contributions for peace and stability on the Korean Peninsula." In particular, regarding the joint fact sheet announced last year, the two leaders said it was "a historic agreement that upgraded the South Korea-U.S. alliance to a new level," and added, "Let's work to faithfully implement the agreement."
◇ After the U.S.-China talks, China rejects the "Hormuz resolution"… tensions rise again
Cheong Wa Dae said the call was arranged at the request of Korea to hear the results of the U.S.-China summit. The meeting took place as tough remarks were exchanged over a U.S.-Iran cease-fire proposal and Iran heightened its blockade by imposing tolls in the Strait of Hormuz. The United States is seeking a kind of exit through China, which has significant influence over Iran. For Trump, who faces midterm elections in Nov., the political burden from a prolonged war is also significant.
However, foreign media including Reuters reported that China effectively rejected a U.S.-led resolution condemning the blockade of the Strait of Hormuz immediately after the two-day summit. China's ambassador to the United Nations, Fu Cong, said in an interview with the U.N.-focused online outlet PassBlue, "We do not believe the content of the Hormuz resolution is appropriate, and we do not think the timing is appropriate."
He said, "What we need is to urge both sides (the United States and Iran) to engage in serious, good-faith negotiations to resolve the issue," adding, "At this stage, I don't think passing a resolution would be helpful." President Xi Jinping also expressed that ▲the Strait of Hormuz must remain open ▲and he opposes attempts to militarize the strait and impose tolls, but he drew a line from the U.S.-led resolution.
◇ South Korea and the United States say "JFS is a historic agreement"… Trump's tariffs at a legal crossroads
As the South Korea-U.S. leaders discussed implementing the joint fact sheet, attention is also on the U.S. administration's situation of "illegal ruling on global tariffs." This is because the reciprocal tariffs imposed by President Trump in Apr. last year and the "10% alternative tariff" based on Section 122 of the Trade Act have been ruled illegal one after another in court. At the time, countries including Korea and Japan made large-scale investment in the United States and trade agreements on condition of lowering Trump-style tariffs, but now the imposition of such tariffs itself is increasingly likely to be illegal.
In the joint fact sheet jointly released with the United States in Nov. last year, the government announced that ▲Korea would invest 350 billion dollars (about 525 trillion won) in the United States ▲of which 200 billion dollars would go to strategic industries such as energy, semiconductors, critical minerals, artificial intelligence, and biotech ▲and 150 billion dollars would go to shipbuilding projects (MASGA, Make American Shipbuilding Great Again). Investments in strategic industries would be executed at an annual limit of 20 billion dollars according to progress (percentage-of-completion).