Negotiations with White House may require tariff-defense 'package deal'

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Negotiations with White House may require tariff-defense 'package deal'

Published: 15 Apr. 2025, 19:41 Updated: 15 Apr. 2025, 20:23

Audio report: written by reporters, read by AI

U.S. President Donald Trump speaks during a meeting with El Salvador's President Nayib Bukele in the Oval Office of the White House in Washington April 14. [YONHAP/AFP]

As the Donald Trump administration prepares to begin trade negotiations with Korea next week, the nation is intertwined in a delicate position — one that offers both a strategic advantage and mounting pressure.

U.S. Treasury Secretary Scott Bessent said Monday that Washington would initiate trade talks with Seoul in the coming week. While the move confirms Korea as a priority negotiation partner, it also places the country under a tight deadline — talks must conclude within a 90-day window. The added possibility that the talks could be structured as a "package deal" linking tariffs with defense costs only raises the stakes.

"Acting President Han Duck-soo is determined to deliver meaningful results in talks with the Trump administration, given his background as a seasoned trade expert,” a government official familiar with the matter said on Tuesday.

Han himself stated during a Cabinet meeting on Monday that the country has “now entered a period of full-scale negotiations with the United States,” adding that he would “carry out this final mission based on my past experiences in trade.”

Yet some are cautious about the inherent limitations posed by an interim government as well as the risks of passing the burden onto the incoming government. At the same time, Korea cannot afford to miss the opportunity to secure an early foothold in a prisoner’s dilemma shaped by President Trump’s tariff trap.

Han’s early phone call with Trump on April 8 appears to have paid off. During the call, Han preemptively proposed a "shopping list" of U.S.-friendly measures, including large-scale purchases of U.S. liquefied natural gas (LNG), cooperation on Alaska’s gas pipeline project and concessions related to the shipbuilding industry.

The following day, Trump described the conversation as a “great call,” and that he expects “the confines and probability of a great deal for both countries.”

Following Bessent’s remarks, high-level talks are now scheduled for next week, likely led by Ahn Duk-geun, minister of trade, industry and energy. Virtual working-level meetings on the Alaska LNG project will also begin this week.

Korea’s inclusion alongside Japan, Britain, Australia and India as one of Washington's five “top targets” for negotiation could ease some pressure, reinforcing the country’s status as a key U.S. ally. Analysts speculate that the White House may be seeking to leverage Korea’s pre-election political context, with the country’s presidential vote just two months away, to advance its own strategic objectives.

Acting President and Prime Minister Han Duck-soo, center, speaks while receiving a video briefing from Minister of Trade Cheong In-kyo, who is visiting the United States to respond to the tariff policies of the Donald Trump administration, and Korean Ambassador to the United States Cho Hyun-dong at the Government Complex Seoul in Jongno District, central Seoul, on April 10. [YONHAP]

Trump’s strategy of prioritizing allies is seen as a broader effort to counter China. With U.S. stocks and bonds under pressure and Beijing responding aggressively to U.S. tariffs, the Trump administration is believed to be seeking quick deals with allied nations to prevent them from gravitating toward China.

Still, Trump’s concept of “one-stop shopping” — tying tariffs and defense costs into a single negotiation — breaks with conventional diplomacy and may not resemble talks with other countries. Given that he treats tariffs not just as trade tools but as a catchall weapon that encompasses politics, diplomacy and security, it’s possible that he may even use the presence of U.S. troops in Korea as a bargaining chip.

Trump mentioned on April 9 that U.S. military personnel overseas have nothing to do with trade, but later described the one-stop shopping approach as “beautiful and efficient.” The remark was made after Trump complained that the U.S. is already paying enormous amounts for defense costs in Korea.

U.S. President Donald Trump meets with El Salvador's President Nayib Bukele in the Oval Office of the White House in Washington April 14. [YONHAP/AFP]

While some within the Korean government remain skeptical about the feasibility of linking tariffs and defense costs, two dissimilar concepts in a single agreement, others say that Trump’s package deal may be a realistic path forward — especially if defense cost increases are unavoidable.

“Trump’s style is to put everything on the table, even unrelated issues, and negotiate as a whole,” said Prof. Kim Jae-chun of Sogang University’s Graduate School of International Studies. “Even if we insist on separating the issues, it won’t work. If we’re going to end up raising our defense expenses anyway, then we should proactively enter negotiations and consider ambitious proposals — such as investing in U.S. nuclear modernization in exchange for stronger extended deterrence.”

Others argue that in dealing with Trump, Korea must accept some increase in defense costs in order to secure corresponding practical gains elsewhere.

“Given that Korea doesn’t have many strong bargaining chips beyond a defense cost increase, it might be necessary to accept certain unavoidable points,” said Prof. Lee Byong-chul, an expert on nuclear nonproliferation and strategy at Kyungnam University. “Now that the window of opportunity is open, it’s time for bold action — give big, and get big.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.

BY PARK HYUN-JU [[email protected]]