South Korea to engage US on investment bill after tariff hike threat

The statement followed President Donald Trump’s announcement to raise reciprocal tariffs and auto duties on South Korea.

South Korea’s Ministry of Economy and Finance has said Seoul will engage with Washington over the ongoing legislative progress on a bill to support the former’s investment plans in the US.
The statement followed President Donald Trump’s announcement to raise reciprocal tariffs and auto duties on South Korea.
South Korea’s Ministry of Trade, Industry and Resources is also closely monitoring the situation.

“We are currently working to gauge the intentions of the US side,” the ministry said in a message to journalists.

“Going forward, we will engage with the US government to explain developments in discussions over the legislation at the National Assembly,” the ministry was quoted as saying by domestic media outlets.

A Truth Social post by Trump said he is raising ‘reciprocal’ tariffs and auto tariffs on South Korea to 25 per cent from 15 per cent as the Korean legislature has not yet completed the domestic process to implement the countries’ bilateral trade deal.

In November 2025, Seoul’s ruling Democratic Party of Korea submitted a special bill to support the country’s $350-billion investment pledge to the United States—part of the tariff deal.

South Korea’s Ministry of Trade, Industry and Resources is also closely monitoring the situation. Industry Minister Kim Jung-kwan, who is currently in Canada, will visit Washington for talks on the matter, with a meeting with US Commerce Secretary Howard Lutnick being arranged, the ministry said in a statement.

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