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Speculation grows in Seoul that Trump tariff threat motivated by Coupang probe, digital regulations

Published: 28 Jan. 2026, 18:57

U.S. Vice President JD Vance, left, speaks next to President Donald Trump during a dinner with the leaders of the C5 1 Central Asian countries of Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan, in the East Room of the White House in Washington on Nov. 6, 2025. [REUTERS/YONHAP]

Speculation is growing in Seoul that U.S. President Donald Trump’s surprise declaration to restore tariffs on Korea may have been driven in part by accumulated U.S. frustration over Korea’s moves to regulate U.S. tech companies.

While the Trump administration has cited delays in the National Assembly’s passage of a special bill tied to the bilateral tariff agreement, observers say Washington’s discontent also reflects controversy over whether Seoul has treated U.S. companies, including Coupang, unfairly, as well as proposed digital regulations such as an online platform law.

Citing “people familiar with the matter,” the Wall Street Journal reported Tuesday that “Vice President JD Vance met with Korean Prime Minister Kim Min-seok in Washington last week and warned him against penalizing U.S. tech firms, including Coupang.”

The same sources said “while Vance didn’t issue an explicit threat to Kim, the implication was that continued action against U.S. tech firms could mean more complications for the U.S.- Korea trade deal, potentially leading to its unraveling and higher tariffs on Korean goods,” according to the article.

Three days later, on Monday, Trump announced on Truth Social that he would raise reciprocal tariffs on Korea — including tariffs on Korean-made automobiles — to 25 percent, the level before the trade agreement.

“Because the Korean Legislature hasn't enacted our Historic Trade Agreement, which is their prerogative, I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15% to 25%,” read the post.

Kim said after the meeting with Vance that the vice president asked what issues Coupang was facing in Korea, and that Kim explained the case involving a leak of people’s personal information. Kim said Vance indicated understanding.

Prime Minister Kim Min-seok and U.S. Vice President J.D. Vance pose for a photo at the White House in Washington on Jan. 23. [PRIME MINISTER'S OFFICE]

Still, some in Seoul interpret Trump’s move as a sign that Washington's concerns have not been fully addressed.

Similar questions reportedly surfaced during Kim’s visit to Washington last week, including at a luncheon with seven U.S. lawmakers seen as friendly to Korea, where Korean American members such as Republican Young Kim and Democrat Dave Min asked whether Coupang was facing discriminatory treatment in Korea, according to officials familiar with the matter.

The sentiment also appeared in a post on X by House Judiciary Committee Republicans on Tuesday. The account reposted Trump’s tariff announcement and said, “This is what happens when you unfairly target American companies like Coupang.”

Criticism has also been amplified by media and investor moves in the United States.

“The major investors, Greenoaks and Altimeter, accused the country of a witch hunt against Coupang after there was a major consumer data breach that led to billions of dollars in losses for investors,” wrote conservative news outlet Breitbart. “Backers of Coupang believe that the extent of the data breach was overstated and over-penalized to boost competition for domestic and Chinese companies.”

U.S. President Donald Trump speaks to reporters over the North Atlantic as he returns to Washington from the World Economic Forum in Davos, Switzerland, aboard Air Force One on Jan. 22. [REUTERS/YONHAP]

U.S. officials and lawmakers have also voiced concern that Korea’s investigations into Coupang and digital policy moves, including revisions to the Information and Communications Network Act, dubbed an anti-disinformation law by Korean media, could function as non-tariff digital barriers.

The U.S. State Department issued an unusual statement on Dec. 31 expressing serious concern about the amendment, citing issues including freedom of expression.

James Heller, the chargé d’affaires at the U.S. Embassy in Seoul, also sent a letter to the Korean government on Jan. 13 urging implementation of a joint Korea-U.S. fact sheet that states U.S. companies should not face discrimination or unnecessary barriers in digital services, according to reports and U.S. Embassy materials.

Robert O’Brien, a former White House national security adviser under Trump, said on Dec. 23 that the National Assembly’s targeting of Coupang would pave the way for broader regulatory barriers against U.S. firms, according to Korea JoongAng Daily coverage and other reports.

"I think that they are getting the message," U.S. Trade Representative Jamieson Greer said in an interview on Tuesday with Fox Business. "We have nothing in particular against Korea. They're an ally. But when it comes to the economics of all of this, it has to be balanced."

President Lee Jae Myung, right, shakes hands with U.S. President Donald Trump after presenting him with the Grand Order of Mugunghwa and a model of the Cheonmachong gold crown at the Gyeongju National Museum in Gyeongju, North Gyeongsang, on Oct. 29, 2025. [JOONGANG ILBO]

The White House, however, has maintained that the decision is rooted in Korea’s failure to implement its side of the agreement.

A White House official said in response to an inquiry from the JoongAng Ilbo that, in reality, Korea reached a deal with the Trump administration to secure lower tariffs, and that while Trump lowered tariffs on Korea, Seoul has shown little progress in fulfilling its commitments.

The Wall Street Journal reported that a White House official said “ongoing tensions over tech and religious issues didn’t push Trump to issue his Monday tariff threat.”

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 KIM HYOUNG-GU [[email protected]]