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New Korean gov't faces Trump tariff pressure with trade talks set to begin

Published: 03 Jun. 2025, 19:24 Updated: 03 Jun. 2025, 21:28

President Donald Trump speaks at U.S. Steel Corporation's Mon Valley Works-Irvin plant on May 30 in West Mifflin, Pennsylvania. [AP/YONHAP]

U.S. President Donald Trump is intensifying his push on tariffs following a recent federal court ruling, raising pressure on Korea’s incoming administration ahead of soon-to-begin full-scale trade negotiations with Washington.

According to Reuters on Monday, the Trump administration has asked its negotiating partners to submit their “best offers” by Wednesday. A draft letter to negotiating partners from the office of the United States Trade Representative, seen by Reuters, shows that Washington is demanding concessions as part of ongoing tariff negotiations.

The draft letter reportedly states that the United States will propose “a possible landing zone,” including reciprocal tariff rates, within days of receiving offers.

The draft also warns that “regardless of ongoing litigation concerning the President’s reciprocal tariff action in U.S. courts, the President intends to continue this tariff program pursuant to other robust legal authorities if necessary, so it is important that we continue our discussions on these matters.”

Observers say the letter signals Washington’s intent to conclude negotiations as quickly as possible and reflects growing concerns about the sustainability of Trump’s tariff policies.

Criticism is mounting within the United States over slow-moving negotiations. A new acronym — “TACO,” short for “Trump Always Chickens Out” — has surfaced in public discourse.

The Trump administration has been in talks with 19 key trading partners, including China, since postponing reciprocal tariffs for 90 days on April 9, but Britain is the only country that has reached an agreement, on May 8.

U.S. Secretary of Commerce Howard Lutnick listens to U.S. President Donald Trump speak during an event to sign executive orders in the Oval Office at the White House in Washington on April 23. [REUTERS/YONHAP]

Adding to the administration’s difficulties, the U.S. Court of International Trade ruled on May 28 that Trump had “overstepped his authority” by using the International Emergency Economic Powers Act to impose reciprocal tariffs. The next day, a federal court in Washington sided with two educational toy companies in a related case, blocking the tariffs.

These court setbacks had initially raised expectations that the administration might ease its stance. However, Washington has instead responded by appealing the rulings and escalating pressure on negotiating partners.

Following the court’s decision, the Trump administration accused China of violating its trade deal with the United States and announced that it would raise steel tariffs from 25 percent to 50 percent starting Wednesday.

“If the Courts somehow rule against us on Tariffs, which is not expected, that would allow other Countries to hold our Nation hostage with their anti-American Tariffs that they would use against us. This would mean the Economic ruination of the United States of America!” Trump wrote on Truth Social on Monday.

This escalation is expected to increase the burden on Korea’s new government, which takes office on Wednesday. Talks with the United States began in April and have shown little progress. Uncertainty also looms over the so-called July Package, a proposed agreement to conclude negotiations by July 8, when the current tariff suspension expires.

Korean exports to the United States fell about 8 percent year-on-year in May, highlighting the growing impact of tariffs. With the United States maintaining a firm stance against further extensions, Korea will find it difficult to request a delay in the expiration of the suspension.

U.S. President Donald Trump meets with China's President Xi Jinping at the start of their bilateral meeting at the G20 leaders summit in Osaka, Japan, on June 29, 2019. [REUTERS/YONHAP]

Adding to Korea’s challenges, countries like Japan and India appear to be moving quickly toward agreements with the United States. Japan’s Nikkei newspaper reported that Prime Minister Shigeru Ishiba seeks to meet Trump twice in June — during the Group of 7 Summit from June 15 to 17 and the NATO Summit from June 24 to 25.

Ministerial-level negotiations between the two countries are expected to continue for a third consecutive week. U.S. Commerce Secretary Howard Lutnick also recently said that a U.S.-India agreement will likely be announced soon.

The United States’ demands reportedly include politically sensitive nontariff concessions, such as easing restrictions on imports of U.S. beef over 30 months old and living modified organisms. These issues could provoke an unexpected domestic backlash for Korea’s new government.

“Determining whether a postponement of the July Package is possible must be a top priority,” said Heo Yoon, a professor of international trade at Sogang University’s Graduate School of International Studies. “The new administration must make tariff negotiations with the United States a policy priority and push for a summit with Trump as soon as possible.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM WON [[email protected]]