US Trade Spat With South Korea Driven by Tech Laws, Gridlock


Photographer: SeongJoon Cho/Bloomberg
Photographer: SeongJoon Cho/Bloomberg

The Trump administration is demanding that South Korea take concrete steps to implement its six-month-old trade deal with the US in order to prevent tariffs from rising to 25%, according to US officials.

President Donald Trump’s latest tariff threat marked the culmination of broader tensions in the trade relationship between Washington and Seoul, which have also been exacerbated by frustration over Korean digital-services regulations.

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Vice President JD Vance met with South Korean Prime Minister Kim Min-seok last week in Washington and warned him against penalizing US tech firms including Coupang Inc., according to a person familiar with the discussion. The US-based e-commerce company is an Amazon-like retailer that is widely popular in South Korea and under scrutiny for a data breach last year. The Wall Street Journal reported earlier on the meeting.

While the exchange revealed the breadth of the US’s grievances against South Korea, officials said that efforts to shield US internet companies from digital regulations aren’t directly connected to the president’s latest vow to hike duties.

South Korea’s trade ministry also said US officials have separately raised concerns with Seoul over digital regulations, including the treatment of US companies, but stressed that those issues are not directly linked to Trump’s stated rationale for raising tariffs.

The ministry said the communication from the US side focused on urging non-discriminatory treatment in the digital sector, and that Seoul has repeatedly explained that its laws and enforcement actions do not target American firms. It added that the government is closely monitoring US trade developments and discussing a response.

The main factor driving the president’s announcement was a sense that South Korea is dragging its feet on ratifying their trade agreement, people familiar with the matter said. While the US set tariffs on South Korean goods at 15% under the pact announced last July, Seoul has made little progress fulfilling its end of the bargain.

US Trade Representative Jamieson Greer said he spoke with South Korean officials on Tuesday morning and that a trade team would travel to Washington later in the week for more discussions.



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