Tariff talks turbulence raises concerns over Korea-U. S. ties

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Tariff talks turbulence raises concerns over Korea-U. S. ties

Published: 06 Feb. 2026, 00:00

Audio report: written by reporters, read by AI

Minister of Trade, Industry and Resources Kim Jung-kwan answers reporters’ questions after returning through Incheon International Airport on Jan. 31 following discussions on bilateral trade issues between Korea and the United States related to the proposed reciprocal tariff increase. [NEWS1]

Pressure from the United States to raise reciprocal tariffs by 25 percent under U.S. President Donald Trump shows little sign of easing, raising concerns about a potential strain in Korea-U. S. economic relations. Despite intensified diplomatic efforts by Seoul, a breakthrough remains elusive.

Minister of Trade, Industry and Resources Kim Jung-kwan recently held a video conference with U.S. Commerce Secretary Howard Lutnick, while Foreign Minister Cho Hyun asked U.S. Secretary of State Marco Rubio to withdraw or postpone the tariff increase. However, negotiations have yet to produce concrete progress. The Korean government is prioritizing efforts to block the tariff increase from being formally announced in the U.S. Federal Register while also considering contingency plans aimed at delaying enforcement if the measure proceeds.

Some observers worry that Washington may link tariff negotiations to broader security issues previously discussed between the two allies, including nuclear-powered submarine development and expanded authority over uranium enrichment and nuclear fuel reprocessing. Although such concerns remain unconfirmed, they highlight growing anxiety surrounding the negotiations.

To stabilize bilateral relations and protect national interests, experts stress the need for a pragmatic approach that balances concessions with strategic gains. One priority involves addressing U.S. concerns about Korea’s commitment to invest in the United States. In this regard, the National Assembly is moving forward with a special bill designed to facilitate those investments. Opposition parties have reportedly withdrawn demands for full parliamentary ratification and agreed to form a special committee tasked with passing the legislation within one month, a development viewed as constructive.

Separately, as presidential policy chief Kim Yong-beom suggested, conducting preliminary reviews of commercially viable investment projects before the bill’s passage could help ease U.S. doubts about Korea’s investment commitment.

At the same time, policymakers are urged to manage other sensitive bilateral issues carefully. Disputes related to online platform regulation, the ongoing controversy involving Coupang and joint Korea-UN Command management of the demilitarized zone could become potential sources of friction. Analysts warn that such issues could indirectly influence trade negotiations under the Trump administration.

Korea’s business community is also monitoring developments closely. Leaders of the country’s 10 largest conglomerates recently told President Lee Jae Myung they plan to invest 270 trillion won ($202 billion) domestically over the next five years. Corporate profitability remains critical for sustaining domestic investment and securing tax revenue.

If the United States proceeds with the tariff increase, Korean exporters could face significant challenges. The experience of Hyundai Motor Group, whose operating profits declined following earlier tariff measures, illustrates the potential impact on export-driven industries. Analysts emphasize that the government must carefully coordinate diplomatic, trade and security considerations to minimize economic risks.

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.