Lee Jae-myung bets on delay, but will Trump budge on tariff talks?

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Lee Jae-myung bets on delay, but will Trump budge on tariff talks?

Published: 04 Jun. 2025, 07:00 Updated: 04 Jun. 2025, 18:52

PARK EUN-JEE
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Audio report: written by reporters, read by AI

Left: Newly-elected President Lee Jae-myung. Right: U.S. President Donald Trump. [YONHAP]

Only a month away from the proposed deadline for sealing a tariff deal with the United States, the key question is whether newly elected President Lee Jae-myung can manage to buy time, as he indicated during his campaign, in the face of mounting pressure from the White House.

Experts are outlining various scenarios for how the president-elect will conclude the ongoing talks with the Donald Trump administration by the July 8 deadline, even as he faces the task of appointing key ministers to lead the negotiations.

“It could be difficult for the new government to meet the deadline, so they will try to explain the reason for the delay,” said Heo Yoon, international studies professor at Sogang University who serves as chairman of the National Trade Policy Advisory Council under the Ministry of Trade, Industry and Energy.

“If it doesn’t work, Lee could create a special post assigned to lead the trade negotiations, given that the appointment of the ministers alone could take a month to undergo different steps including hearings,” Heo said.

While it remains unclear who will take the helm of trade policy, Kim Hyun-chong, a foreign affairs and trade adviser in Lee’s camp, will likely play a key role in shaping initial trade and foreign affairs policy direction for the new government.

Kim, who took the lead in the signing of the Korea-U.S. FTA as the trade minister during the former Roh Moo-hyun administration, requested more time for the ongoing negotiation when he met with White House officials last month.

“We pointed out the importance of the automobile and auto parts sectors, given that they account for 67 percent of the trade surplus,” he told reporters after the meeting. “But we also explained that negotiations in the trade sector shouldn’t focus solely on automobiles — it’s essential to consider our broader role, including in shipbuilding, other industries and even in security, from a qualitative perspective.”

But the Trump administration is raising pressure on Korea’s incoming government ahead of the soon-to-begin full-scale trade negotiations. Washington has asked its negotiating partners to submit their “best offers” by Wednesday, according to Reuters on Monday.

“It seems that Lee is trying to buy time because his or the Democratic Party’s position could differ from what the outgoing administration had done or he might need to study the specific details of the tariff agreement being pursued by his predecessor,” said Sung-hyun Henry Kim, economics professor at Sungkyunkwan University.

U.S. President Donald Trump holds a chart next to U.S. Secretary of Commerce Howard Lutnick as Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington on April 2. [REUTERS]

As urgent as it is to continue the negotiations, experts predict that Lee’s inauguration is likely to cause more friction with the Trump administration than a conservative administration would.

“The president from the liberal camp is relatively more constrained by domestic public opinion, labor groups and protected industries,” said Hur Jung, an economics professor at Sogang University.

"As a result, it will be more difficult for the Korean government to strike a balance between its own demands and those of the United States, raising the likelihood of conflict with the U.S. administration.

"Such a possibility of conflict could lead to weakened negotiating leverage in the ongoing Korea-U.S. trade talks or heightened tensions between the two countries,” the professor said.

But Prof. Heo of Sogang University noted that the close relation with laborers and farmers could be beneficial.

“Since farmers and laborers tend to have more favorable views toward a liberal president, it could be beneficial for the new administration when communicating with relevant parties based on a relatively amicable relationship,” Heo said.

BY PARK EUN-JEE, YOON SEUNG-JIN [[email protected]]