(News Focus) Trump-S Korea-tariffs
 |
| ▲ This file photo, released by the Associated Press, shows U.S. President Donald Trump speaking during a signing ceremony in the Oval Office of the White House in Washington on Dec. 11, 2025. (Yonhap) |
 |
| ▲ This photo, released by U.S. Forces Korea, shows U.S. Under Secretary of Defense Elbridge Colby delivering a speech at a think tank in Seoul on Jan. 26, 2026. (PHOTO NOT FOR SALE) (Yonhap) |
 |
| ▲ This photo, taken on Aug. 25, 2025, shows South Korean President Lee Jae Myung (L) shaking hands with U.S. President Donald Trump during their talks in the Oval Office of the White House in Washington. (Yonhap) |
 |
| ▲ This photo, taken on Jan. 27, 2026, shows Korean-made cars waiting to be loaded onto a cargo ship at a port in Pyeongtaek, some 65 kilometers south of Seoul. (Yonhap) |
(News Focus) Trump-S Korea-tariffs
(News Focus) Trump's Korea tariff threat possibly negotiating tactic, raises questions about U.S. trade commitment
By Song Sang-ho
WASHINGTON, Jan. 27 (Yonhap) -- U.S. President Donald Trump's revived tariff threat against South Korea could be a negotiating tactic to gain more concessions from the Asian ally, and raises questions over Washington's commitment to the terms of a bilateral trade deal, experts said Tuesday.
They also pointed out the need for Seoul to respond "calmly" to Trump's tariff announcement so as to keep the hard-fought trade deal on track, advising it not to rush in future negotiations with the United States as the world awaits a Supreme Court ruling on the legality of his country-specific "reciprocal" tariffs.
On Monday, Trump made the surprise announcement on a plan to increase "reciprocal" tariffs and auto duties on South Korea, among others, to 25 percent from 15 percent, taking issue with a delay in the Asian country's legislative procedures supporting the implementation of the trade deal.
The announcement has created confusion among policymakers in Seoul, prompting them to hold an emergency interagency meeting to discuss responses, and rush Industry Minister Kim Jung-kwan to Washington for talks with U.S. Commerce Secretary Howard Lutnick.
"As in prior instances of the president announcing policies, it's possible that this can be a negotiating tactic to bring Korea to the table to offer additional concessions," Tom Ramage, an economic policy analyst at the Korea Economic Institute of America, told Yonhap News Agency via email.
"Still, these threats should be taken seriously, and the Korean government should work through its diplomatic channels to identify what it is the Trump administration really wants out of this and work from there to find some form of common ground," he added.
Rob Rapson, former acting U.S. ambassador to South Korea, underlined the need for the administration of South Korean President Lee Jae Myung to capitalize on its "pragmatic" foreign policy approach and respond to Trump's tariff threat in a "cool" manner.
"As dramatic and unsettling for the alliance as this sudden move by Trump is, the pragmatic response for Korea would be to engage coolly and calmly with Trump and (his) team to convince (him) that the 'deal' is still on track and that it's in the interests of both to see it through, and that tariff coercion is inappropriate," Rapson said.
Trump's sudden announcement on the tariffs dampened the seemingly positive mood for alliance cooperation that has apparently gained momentum as South Korea has pledged to bolster its defense spending, with U.S. Under Secretary of Defense (USD) Elbridge Colby praising the Asian country as a "model ally" during a visit to Seoul this week.
"Well, so much for being a 'model ally,' as USD Elbridge Colby was touting this week in Seoul," Rapson said. "A capricious president has struck again with tariff threats!"
Commenting on Trump's tariff threat, Patrick Cronin, chair for Asia-Pacific security at the Hudson Institute, said that "brutal transactionalism is the modus operandi of Trump's foreign policy."
"Washington is maximizing leverage to cut better deals for U.S. industry at home and more burden-sharing abroad. But maximalist bargaining has a cost, and we have seen even close allies start hedging," he said.
"Relentless leverage pushes partners toward other middle powers and, in some cases, toward China. Allies won't be forced into binary choices," he added.
The good news is everything is negotiable under Trump's transactional approach, Cronin pointed out.
"Transactional politics cut both ways. They create friction, but also space for dealmakers," he said.
"President Lee Jae Myung has shown he can turn hard bargaining into durable agreements. Seoul is being treated as a model ally because it pairs strategic alignment with serious trade and investment commitments."
Analysts cited various potential factors that might have led Trump to announce the plan for tariff increases.
The announcement came amid concerns in Washington over South Korea's ongoing investigation into Coupang Inc., a U.S.-listed firm, over a massive customer data leak and the Asian country's moves to regulate online platform companies.
It also followed worries that the Korean currency's weakness could get in the way of the Asian country delivering on the pledge that it has made to invest US$350 billion in the U.S. in return for Washington's lowering of reciprocal tariffs to 15 percent under the trade deal first struck in late July.
"While no one factor is responsible, it's likely that some of the ongoing trade disputes between the U.S. and Korea, including those not fully covered by the July deal, have caused the president to revive tariff threats," Ramage said.
"U.S. investors in Coupang have asked for intervention by the Trump administration to address the Korean government's recent investigation into the company. U.S. lawmakers have also called on the president to address Korea's digital services regulations."
Observers raised hopes that Trump could suddenly withdraw from his tariff threat as Seoul is stepping up efforts to figure out how to address his concerns.
"Recent threats by the U.S. administration on trade deals with other economic blocs, such as the European Union in light of U.S. demands for Greenland, have only proven that these types of sudden actions are not often the last word," Ramage said.
"As the current iteration of the U.S.-Korea 'Trump Round' trade deal took months to negotiate, nothing should be rushed, particularly as we wait to hear outcomes from the Supreme Court on the legality of the tariffs themselves."
The high court is deliberating on the legality of Trump's use of the 1977 International Emergency Economic Powers Act to impose "reciprocal" tariffs on South Korea and other trading partners. It is expected to hand down its ruling in the coming months.
Ramage warned that an increase of the tariffs in question would put Korea behind its foreign competitors, including Japan, in areas, such as automobiles, and could call into question Korean investments in the U.S., which the original 15 percent tariffs on autos were predicated on.
"If anything, it could make further commitment to the $350 billion investment fund precarious as investors would question whether the terms of the projects are truly set in stone," he said.
He went on to say, "The threat of U.S. tariffs after a deal that was already agreed to certainly raises questions about U.S. commitment to its terms."
Observers concurred that Trump's tariff announcement, if enforced, could inject new uncertainty into the bilateral relationship. The trade deal has provided a degree of certainty in the two countries' economic ties following months of their grueling negotiations.
(END)
(C) Yonhap News Agency. All Rights Reserved
