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Bilateral trade deal discrepancies could prompt U.S., Korean officials to reassess details

Published: 30 Oct. 2025, 11:34

U.S. Commerce Secretary Howard Lutnick speaks with Japan's Foreign Minister Toshimitsu Motegi during their meeting at the Foreign Ministry in Tokyo, Tuesday, Oct. 28. [AP/YONHAP]

Discrepancies have emerged between the U.S. and Korean governments over the specifics of the recent bilateral trade agreement, raising the possibility of further negotiations before a final deal is signed.

On Wednesday, U.S. Commerce Secretary Howard Lutnick described the trade agreement reached during U.S. President Donald Trump's summit with Korean President Lee Jae Myung in broad terms on X, formerly Twitter, claiming, “South Korea has also agreed to FULLY open their markets. 100 [percent]!”

The remark seemed to use exaggerated language as a way to highlight trade performance to the U.S. audience, but diverged from the Korean government's position, which emphasized that it had successfully excluded the further opening of agricultural markets, including rice and beef.

Lutnick also stated that the agreement did not include semiconductor tariffs — an issue that remains a point of contention. While the United States is reportedly preparing to announce new tariffs on semiconductors, the Korean government has said it had secured terms ensuring Korea would not face harsher treatment than its main competitor, Taiwan.

Lutnick’s comments suggest Washington may still seek further talks with Seoul on semiconductor tariffs during the implementation phase.

As a result, observers say the two sides could continue negotiating sector-specific tariff terms — including for semiconductors — until a formal agreement is signed.

Lutnick also outlined how Korea’s pledged $350 billion investment in the United States will be used. “These investments will be directed and approved by the President,” he wrote, adding that the first target sector would be shipbuilding, with at least $150 billion committed to building vessels in the United States.

He said Trump had authorized Korean shipbuilders to construct nuclear-powered submarines in Philadelphia — referring to the Philly Shipyard recently acquired by Hanwha Ocean.

Lutnick added that Trump would also direct another $200 billion in Korean investment toward various U.S. initiatives, including the Alaska natural gas pipeline, energy infrastructure, critical minerals, advanced manufacturing, AI and quantum computing.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY HAN YOUNG-HYE [[email protected]]