US tariff threat persists, says South Korea trade chief; urges caution to avoid wider friction – Firstpost

South Korea’s top trade negotiator has warned that the threat of higher US tariffs has not faded, even as Seoul works to ease tensions and fast-track key legislative commitments made to Washington last year.

Trade Minister Yeo Han-koo said the government has assured the United States that it is ready to swiftly implement agreements reached in 2025, including expediting parliamentary work on the proposed Special Law on Strategic Investment with the US.

Speaking to reporters on Thursday after returning from Washington, Yeo said US concerns have largely centred on what it perceives as delays in South Korea’s National Assembly. Such delays, he said, have raised doubts in Washington over Seoul’s willingness to fully execute the deal.

He added that the government is pushing for bipartisan cooperation to accelerate deliberations and remove any uncertainty around the legislation.

The renewed tariff risk comes at a sensitive time for Asia’s fourth-largest economy. Trade accounts for roughly 40 per cent of South Korea’s gross domestic product, with the US serving as its second-largest export market.

Any increase in duties could weigh on exporters and cloud the country’s growth outlook.

Yeo also sought to downplay speculation about a possible notice being posted in the US Federal Register — a procedural step that could precede tariff action. He described such a move as part of Washington’s internal administrative process.

Even if a notice is issued, the critical question would be whether tariffs take effect immediately or after a one- to two-month grace period, he said.

“As we still have time for talks, we’ll continue to engage closely with the US and make every effort to ensure the outcome is as favourable as possible to our national interest,” Yeo said.

On other contentious matters, including issues linked to US-listed e-commerce firm Coupang, Yeo declined to provide details, citing the sensitivity of ongoing negotiations.

He said the joint fact sheet agreed between the two sides covers not only investment pledges but also non-tariff elements that must be handled carefully to avoid unnecessary friction.

The Coupang case has drawn attention in Washington following a data breach investigation in South Korea, fuelling complaints over digital regulations and alleged discriminatory scrutiny. South Korean officials, however, have repeatedly maintained that former US President Donald Trump’s threat to raise tariffs on Korean imports is unrelated to the probe.