U.S. Presses South Korea Over Trade Deal as Treasury Secretary Calls for Ratification
Updated (6 articles)
Structure of the Bilateral Agreement and Investment Target The United States and South Korea signed a historic pact on July 30 2025, later finalized, obligating Seoul to invest up to US$350 billion in the United States [1][5][4]. In return, Washington reduced reciprocal tariffs on Korean autos, lumber and pharmaceuticals to 15 percent from the previous 25 percent [1][5]. The agreement also granted U.S. approval for South Korea’s acquisition of nuclear‑powered submarines and support for civilian uranium enrichment [5][4].
South Korean Parliament Has Not Ratified the Pact The ruling Democratic Party submitted a special bill in November to implement the deal, but the National Assembly has not yet passed it, leaving the agreement inactive [1][2][4]. Treasury Secretary Scott Bessent emphasized that “there is no trade deal until they ratify it,” and suggested that the looming 25 percent tariff could pressure lawmakers [1]. Finance Minister Koo Yun‑cheol pledged to give an “active explanation” to the United States while continuing talks with legislators [2].
President Trump Announces 25% Tariff Increase On Jan 26 2026 President Donald Trump used Truth Social to announce a 25 percent reciprocal tariff on Korean autos, lumber, pharmaceuticals and other goods, citing the legislative delay [6][5][4]. The move reverses the earlier 15 percent rate and is presented as a swift response to Seoul’s inaction [6][4]. Trump also said the United States “will work something out” with South Korea, hinting at possible de‑escalation [2].
Washington Officials Cite Additional Concerns Over Korea White House official reported that South Korea has made “no progress” on its obligations, noting U.S. worries about a massive Coupang data breach and a weak Korean won that could hinder the investment pledge [3][4]. Industry Minister Kim Jung‑kwan was summoned from Canada to meet Commerce Secretary Howard Lutnick in Washington to discuss the tariff hike and the stalled deal [3]. These concerns are layered onto the tariff dispute, amplifying pressure on Seoul [1][4].
Seoul Responds With Active Communication Strategy Finance Minister Koo Yun‑cheol announced that the government will continuously explain its commitment to the United States and cooperate closely with the National Assembly [2][3]. He stressed that the special bill promoting U.S. investment remains pending and that active dialogue aims to accelerate its passage [2]. The administration’s outreach seeks to reassure Washington while avoiding further tariff escalations [2].
Sources
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1.
Yonhap: U.S. Treasury Secretary Says Trade Deal With South Korea Awaits Ratification: Treasury Secretary Bessent declares the pact inactive without parliamentary ratification, hints that 25 % tariffs could spur action, and notes upcoming talks between Industry Minister Kim and Commerce Secretary .
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2.
Yonhap: South Korea Vows Active Explanation as U.S. Threatens Tariff Increase: Finance Minister Koo pledges active explanation to the U.S., stresses communication with the Assembly, and references a stalled special bill while noting Trump’s willingness to negotiate .
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3.
Yonhap: White House official says South Korea made “no progress” on trade deal: A White House source claims Seoul has not fulfilled deal obligations, cites Coupang data‑leak and weak won concerns, and reports Kim’s urgent trip to Washington .
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4.
Yonhap: Trump Raises South Korea Tariffs to 25% Over Legislative Delay: Trump announces 25 % tariffs citing the National Assembly’s inaction, details an emergency inter‑agency response, and highlights security concessions tied to the agreement .
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5.
Yonhap: Trump raises South Korean tariffs to 25% amid trade‑deal delays: Article outlines the original 15 % tariff, the $350 billion investment pledge, nuclear submarine and uranium support, and links the tariff hike to the Coupang investigation .
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6.
Yonhap: Trump Raises South Korean Tariffs to 25% Over Unapproved Trade Deal: Focuses on Trump’s Truth Social announcement, the broad sectoral scope of the 25 % tariff, and places the move within a broader U.S. trade‑policy pattern of using tariffs as leverage .
Timeline
Jul 30, 2025 – The United States and South Korea sign a historic bilateral trade agreement that sets reciprocal tariffs at 15 % on autos, lumber and pharmaceuticals, obliges Seoul to invest up to US$350 billion in the United States, and includes security concessions such as approval for nuclear‑powered submarines and civilian uranium fuel rights [5][6].
Oct 29, 2025 – President Trump reaffirms the July deal during a visit to Seoul, emphasizing the United States’ commitment to the lowered tariffs and the $350 billion investment pledge [5][6].
Nov 2025 – South Korea’s ruling Democratic Party submits a special bill to the National Assembly to enact the investment commitments and other provisions of the trade pact; the legislation remains stalled [1][2][4].
Jan 20, 2026 – A White House briefing (photographed by AFP) underscores the administration’s focus on trade enforcement as tensions with Seoul rise [6].
Jan 26, 2026 – President Trump posts on Truth Social that the United States will raise reciprocal tariffs on South Korean autos, lumber, pharma and other goods from 15 % to 25 % because the Korean legislature “has not approved the historic trade agreement” and is “not living up to its Deal with the United States” [6][5][4].
Jan 26, 2026 – The tariff hike reverses earlier reductions and is presented as pressure to accelerate the $350 billion investment commitment promised in the July 2025 deal [5][4].
Jan 27, 2026 – A White House official tells Yonhap that South Korea has made “no progress” on its obligations, citing the tariff increase and noting U.S. concerns over a Coupang data breach and a weak won [3].
Jan 27, 2026 – South Korean Industry Minister Kim Jung‑kwan, then in Canada, is summoned to Washington for urgent talks with U.S. Commerce Secretary Howard Lutnick to address the tariff escalation and keep the trade deal on track [4][3].
Jan 27, 2026 – The Blue House convenes an inter‑agency emergency meeting to formulate a response to the U.S. tariff hike and to press the National Assembly for swift ratification [4].
Jan 28, 2026 – U.S. Treasury Secretary Scott Bessent tells CNBC, “there is no trade deal until they ratify it,” and adds that a 25 % tariff could “help get things moved along,” signaling that higher duties are intended to spur Korean legislative action [1].
Jan 28, 2026 – Finance Minister Koo Yun‑cheol pledges “active explanation” to the United States, urging the National Assembly to cooperate on the stalled special bill and indicating a willingness to “work something out” with Washington [2].
Jan 28, 2026 – South Korean Industry Minister Kim Jung‑kwan is scheduled to travel to Washington for a meeting with Commerce Secretary Howard Lutnick, aiming to resolve the tariff dispute and advance the pending trade agreement [1].