Tariffs – South Korea Seeks Stability in U.S. Trade Talks
Tariffs – South Korea will continue engaging the United States in constructive discussions over tariffs to protect the favorable export terms secured under their bilateral trade agreement, the country’s industry minister said Monday.
Government Pledges Continued Dialogue With Washington
Speaking after a meeting with business leaders, Trade, Industry and Energy Minister Kim Jung-kwan stressed that Seoul would maintain steady communication with Washington to ensure that the balance of benefits achieved through the Korea-U.S. tariff agreement remains intact. He noted that safeguarding national economic interests would remain the government’s top priority.
Kim’s comments came as trade policy uncertainty resurfaced following a recent decision by the U.S. Supreme Court. The court invalidated President Donald Trump’s reliance on the 1977 International Emergency Economic Powers Act (IEEPA) to justify duties imposed on South Korea and several other trading partners under so-called reciprocal tariff measures.
New U.S. Tariff Measures Raise Fresh Questions
Shortly after the ruling, Trump unveiled a temporary global tariff of 15 percent and indicated that his administration would introduce alternative, legally permissible duties to replace those nullified by the court. The announcement has added a new layer of complexity to the global trade environment.
According to Kim, the U.S. administration is likely to pursue other legal avenues to sustain its tariff agenda. He pointed specifically to Sections 122 and 301 of the Trade Act as possible tools Washington could use to implement fresh measures. These provisions allow the U.S. president and trade authorities to address trade imbalances and investigate alleged unfair trade practices by foreign governments, potentially leading to new import restrictions or tariffs.
Kim warned that such steps could further heighten volatility in international markets, underscoring the need for careful monitoring and strategic preparation.
Seoul Prepares for Potential Trade Investigations
When asked about the possibility of South Korea becoming subject to a Section 301 investigation, Kim declined to speculate. However, he acknowledged the importance of proactively managing trade-related issues to minimize the risk of being targeted under such procedures.
The minister said the government would work closely with relevant agencies and industry groups to provide businesses with up-to-date information, including guidance on tariff refund mechanisms. This, he said, would help companies navigate evolving export conditions and reduce uncertainty.
In parallel, Seoul plans to intensify efforts to strengthen the competitiveness of domestic firms and expand into new overseas markets. Diversifying export destinations and enhancing industrial capacity were cited as key strategies to cushion potential disruptions in trade flows.
Support Measures for Domestic Companies
Kim reiterated that support for local enterprises would remain central to the government’s trade strategy. With global supply chains already under strain from shifting policies and geopolitical tensions, he emphasized the need for companies to remain agile and globally competitive.
The ministry intends to provide targeted assistance aimed at improving innovation, production efficiency and market access. Officials also plan to enhance coordination with industry associations to ensure businesses receive timely updates on regulatory or tariff-related changes abroad.
Investment Review Process Continues
Following the meeting, Kim told reporters that South Korea is proceeding with its preliminary review of potential investment projects in the United States, regardless of the Supreme Court’s decision. Earlier this month, the government formed a committee to examine such initiatives after Washington signaled the possibility of raising reciprocal tariffs and automobile duties to 25 percent.
The proposed increases were linked to concerns in Washington over delays in Seoul’s legislative process to implement elements of the trade agreement concluded last year.
Despite the renewed uncertainty, Seoul appears committed to maintaining stable trade relations with its largest economic partner. By sustaining dialogue and preparing contingency measures, officials aim to shield exporters from abrupt policy shifts while preserving the gains achieved under the bilateral accord.