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South Korea seeks urgent parliamentary approval of a US-bound investment bill and requests talks with Washington after President Donald Trump announces plans to raise tariffs on key Korean exports to 25 per cent.
South Korea's Deputy Prime Minister and Finance minister Koo Yun Cheol has said that he will request help from the Parliament to rally political support for a key investment bill aimed at the United States-bound investment after President Donald Trump announced plans to raise tariff on a range of South Korean goods to 25%.
“Will request help from the Parliament for swift approval of Bill”, ssai Koo Yun Cheol, adding, "Will hold talks with the US on Korea's parliamentary bill approval process for US-bound investment.
The proposed tariff hike, which would lift duties from 15 per cent to 25 per cent on products including automobiles, lumber and pharmaceuticals, has prompted Seoul to seek urgent consultations with Washington DC while pressing its legislature to accelerate approval of measures linked to US-bound investment.
Seoul pushes parliament for rapid approval
The South Korean finance ministry said it would request assistance from parliament to ensure the swift passage of legislation connected to outbound investment to the United States.
At the same time, officials confirmed that Seoul intends to engage directly with Washington on the domestic approval process. According to the finance ministry, it will hold talks with US counterparts to explain how South Korea’s parliamentary procedures affect the timing and implementation of the investment bill.
The move reflects growing concern in Seoul that delays in domestic ratification could be interpreted in Washington DC as a failure to honour commitments made under the trade and security pact finalised late last year.
No prior notice from Washington DC, says South Korea
South Korea’s presidential office said it had not been informed in advance of the Trump proposed tariff increase and was seeking clarification from the United States.
“There has been no official notification from the US government, nor any explanation of the details, at this point,” Seoul’s presidential office said.
The statement added that Trade Minister Kim Jung-kwan, currently attending meetings in Canada, would travel to Washington DC at the earliest opportunity to address the issue directly.
“Trade Minister Kim Jung-kwan, who is currently in Canada, also plans to visit the United States as soon as possible to consult with Commerce Secretary (Howard) Lutnick on the matter,” the statement added.
Trump cites legislative delays for Tariff on South Korea
President Donald Trump announced the tariff increase on Monday, accusing South Korea’s legislature of failing to enact elements of what he described as a “Historic Trade Agreement” between the two countries.
“South Korea’s Legislature is not living up to its Deal with the United States,” Trump wrote on Truth Social platform.
The US President added that the tariff decision was a response to parliamentary inaction in Seoul.
“Because the Korean Legislature hasn’t enacted our Historic Trade Agreement, which is their prerogative.”
If implemented, the move would effectively undo one of the central achievements of the earlier accord, which had reduced US tariffs on South Korean cars from 25 per cent to 15 per cent in exchange for investment commitments from Seoul.
High stakes for South Korea's auto sector
The potential reversal has raised alarm across South Korea’s export-driven economy, particularly within the automotive industry. Vehicles and related products account for roughly 27 per cent of South Korean exports to the United States, which absorbs nearly half of the country’s total car exports.
A return to higher tariff levels would also leave South Korean manufacturers at a competitive disadvantage relative to Japan and the European Union, both of which have secured trade arrangements with Washington that cap tariffs at 15 per cent.
English (US) ·