INTERNATIONAL
Trump's new South Korea tariff threats underscore see-sawing trade negotiations
A general view shows HD Hyundai Heavy Industries Ulsan Shipyard in Ulsan, South Korea. - HD Hyundai Heavy Industries/REUTERS
SEOUL: Here are some key events in trade negotiations between the United States and South Korea, starting with U.S. President Donald Trump's initial tariff threat in April 2025 to his latest one in January 2026:
AI Brief
April 2, 2025
President Trump unveiled tariffs against major trading partners, including a 25% duty on imports from South Korea, in his "Liberation Day" announcement.
April 25, 2025
South Korea agreed with the U.S. to craft a trade package by early July at their first round of negotiations.
July 30, 2025
Seoul reached a preliminary trade agreement with Washington, which included South Korea's US$350 billion investment in the United States but without written confirmation of details, sparking disputes. The deal lowered country-specific tariffs on South Korea to 15% but left auto tariffs at 25%.
August 25, 2025
South Korean President Lee Jae Myung, who took office on June 4, held his first summit with Trump. The talks ended without any explosive clash after Trump's threatening comments made just hours before the meeting, but also without concrete agreements on the details of the investment package.
September 4, 2025
U.S. immigration authorities raided a Hyundai Motor car battery factory construction site in the state of Georgia and arrested some 300 South Korean workers, an incident which Lee said made South Korean firms hesitant about investing in the United States.
September 22, 2025
Lee told Reuters in an interview that South Korea could fall into a crisis rivalling its 1997 meltdown if the government accepted U.S. demands regarding the US$350 billion investment package without foreign exchange safeguards.
October 29, 2025
Trump and Lee finalised details of their trade deal, which included currency safeguards demanded by Seoul, at their second meeting held on the sidelines of the annual summit of the Asia-Pacific Economic Cooperation grouping in South Korea.
November 14, 2025
The U.S. and South Korea released a joint statement on agreements made at the October summit and signed a non-binding memorandum of understanding on the US$350 billion investment package.
November 26, 2025
South Korea's ruling Democratic Party introduced a bill to establish a special fund to finance the US$350 billion investment package, which also lowered U.S. tariffs on auto imports from South Korea to 15%.
November 29, 2025
Coupang, the biggest online retailer in South Korea, said it learned of a breach of personal information from 33.7 million customer accounts, triggering a backlash from South Korean lawmakers and a wide-ranging investigation by authorities, which the U.S.-listed company said was discrimination against an American company.
January 14, 2026
U.S. Treasury Secretary Scott Bessent made a rare comment on the recent depreciation in the South Korean won KRW=, after discussing the "full and faithful" implementation of their trade deal with South Korean Finance Minister Koo Yun-cheol.
January 16, 2026
South Korean Finance Minister Koo Yun-cheol told Reuters in an interview that the US$350 billion investment package was unlikely to kick off in the first half of 2026, citing currency volatility.
January 23, 2026
South Korean Prime Minister Kim Min-seok said U.S. Vice President JD Vance had requested that questions over Coupang be resolved fairly to avoid tension.
January 26, 2026
Trump said in a post on his social media platform Truth Social he was raising tariffs on U.S. imports of South Korean autos and other goods, blaming the legislature of an ally and a major trading partner for dragging its feet on enacting a deal to implement the US$350 billion investment package.
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AI Brief
- A US-South Korea trade deal involving a massive US$350B investment faced delays, political tensions and disputes over regulatory actions.
- Immigration raids, currency volatility and unclear investment timelines further strained relations and slowed progress on the agreement.
- Trump accused Seoul of dragging its feet and responded by raising tariffs on South Korean autos and other goods.
April 2, 2025
President Trump unveiled tariffs against major trading partners, including a 25% duty on imports from South Korea, in his "Liberation Day" announcement.
April 25, 2025
South Korea agreed with the U.S. to craft a trade package by early July at their first round of negotiations.
July 30, 2025
Seoul reached a preliminary trade agreement with Washington, which included South Korea's US$350 billion investment in the United States but without written confirmation of details, sparking disputes. The deal lowered country-specific tariffs on South Korea to 15% but left auto tariffs at 25%.
August 25, 2025
South Korean President Lee Jae Myung, who took office on June 4, held his first summit with Trump. The talks ended without any explosive clash after Trump's threatening comments made just hours before the meeting, but also without concrete agreements on the details of the investment package.
September 4, 2025
U.S. immigration authorities raided a Hyundai Motor car battery factory construction site in the state of Georgia and arrested some 300 South Korean workers, an incident which Lee said made South Korean firms hesitant about investing in the United States.
September 22, 2025
Lee told Reuters in an interview that South Korea could fall into a crisis rivalling its 1997 meltdown if the government accepted U.S. demands regarding the US$350 billion investment package without foreign exchange safeguards.
October 29, 2025
Trump and Lee finalised details of their trade deal, which included currency safeguards demanded by Seoul, at their second meeting held on the sidelines of the annual summit of the Asia-Pacific Economic Cooperation grouping in South Korea.
November 14, 2025
The U.S. and South Korea released a joint statement on agreements made at the October summit and signed a non-binding memorandum of understanding on the US$350 billion investment package.
November 26, 2025
South Korea's ruling Democratic Party introduced a bill to establish a special fund to finance the US$350 billion investment package, which also lowered U.S. tariffs on auto imports from South Korea to 15%.
November 29, 2025
Coupang, the biggest online retailer in South Korea, said it learned of a breach of personal information from 33.7 million customer accounts, triggering a backlash from South Korean lawmakers and a wide-ranging investigation by authorities, which the U.S.-listed company said was discrimination against an American company.
January 14, 2026
U.S. Treasury Secretary Scott Bessent made a rare comment on the recent depreciation in the South Korean won KRW=, after discussing the "full and faithful" implementation of their trade deal with South Korean Finance Minister Koo Yun-cheol.
January 16, 2026
South Korean Finance Minister Koo Yun-cheol told Reuters in an interview that the US$350 billion investment package was unlikely to kick off in the first half of 2026, citing currency volatility.
January 23, 2026
South Korean Prime Minister Kim Min-seok said U.S. Vice President JD Vance had requested that questions over Coupang be resolved fairly to avoid tension.
January 26, 2026
Trump said in a post on his social media platform Truth Social he was raising tariffs on U.S. imports of South Korean autos and other goods, blaming the legislature of an ally and a major trading partner for dragging its feet on enacting a deal to implement the US$350 billion investment package.
Your gateway to global news, insights, and stories that matter.