Prime Minister Kim Min-seok faced a roomful of reporters in Seoul on February 2, 2026, his demeanor calm but determined as he addressed a controversy that has sent ripples through diplomatic and economic circles in both South Korea and the United States. The issue at hand? A sudden threat from U.S. President Donald Trump to raise tariffs on Korean goods from 15% to a whopping 25%—a move that could shake the economic relationship between the two allies and reverberate across global markets.
The tension began brewing in late January, when President Trump, citing delays in South Korea’s passage of legislation facilitating a promised $350 billion investment in the U.S., announced the possibility of a steep tariff hike. According to Yonhap, the announcement blindsided not only South Korean officials but also much of the U.S. government, with the exception of a few insiders like Commerce Secretary Howard Lutnick. “This issue was about President Trump’s unique messaging method,” Prime Minister Kim said, refusing to cast the episode as a diplomatic failure on Seoul’s part.
Kim’s defense comes at a time when his government is under fire for allegedly being caught off guard by Trump’s abrupt move—a particularly stinging accusation given that Kim had just returned from Washington, D.C., where he’d established a direct “hotline” with U.S. Vice President JD Vance. “I assess that we did well to open the hotline immediately before that situation arose,” Kim told reporters, emphasizing that “various existing channels of contact, including the hotline with Vice President Vance, were all put into operation, and through a process of learning each other’s true intentions, it is progressing into what we see now.”
Despite these assurances, the reality on the ground has been less reassuring. Trade, Industry and Resources Minister Kim Jung-kwan flew to Washington for urgent meetings with Commerce Secretary Lutnick on January 29 and 30, only to return home empty-handed. “I think all unnecessary misunderstandings were resolved,” Kim told Hankyoreh upon landing back at Incheon International Airport. He explained that he had clarified to the U.S. side that the Korean government was not intentionally delaying the legislative process, but rather that the National Assembly’s schedule had been packed with budget hearings and other year-end priorities.
Yet, for all the diplomatic niceties, the Americans weren’t satisfied. Kim Jung-kwan acknowledged that “there was a considerable amount of frustration expressed regarding the legislation pending for so long in the National Assembly.” He added, “Measures to raise tariffs are already in motion,” with preparations underway for official statements and potential sanctions. The sense of urgency was palpable. “We are planning to hold a video conference with [Lutnick] pretty soon after a round of internal discussions,” Kim said, signaling that the window for negotiation was rapidly closing.
Meanwhile, President Trump doubled down on his stance during a Cabinet meeting on January 29, warning that while tariffs were “steep,” they “could be much steeper”—a message clearly aimed not just at South Korea, but at all U.S. trade partners. According to Hankyoreh, this was widely interpreted as a pressure tactic to accelerate the passage of the investment-related legislation in Seoul.
The legislation in question, introduced to the National Assembly in November 2025, is designed to facilitate South Korea’s massive investment in the U.S. and cement the two countries’ trade partnership. The Lee administration has indicated it expects the bill to be passed by mid-February, while Han Jeoung-ae, chair of the Democratic Party’s policy committee, told reporters that her party would work to pass the legislation before the end of February or early March at the latest. “Once the bill is submitted [to the National Assembly’s Finance, Economy, Planning and Budget Committee] and relayed to the relevant subcommittee, it becomes sufficiently possible for the Finance, Economy, Planning and Budget Committee to begin discussions about the special act on investments in the US,” Han explained. She added confidently, “I dare say the bill will be passed [during a plenary session] sometime around the end of February or early March. If possible, I will work to ensure that we stick to such a schedule.”
However, Han did not hide her concern about the U.S. approach. “If they continue with methods that suddenly raise tariff rates because a bill was not quickly [passed], then we cannot help but harbor concerns about whether we can keep our promises outlined in the US-ROK MOU and joint fact sheet,” she said, describing the situation as “incredibly concerning.” The sense of frustration was echoed by many in the South Korean government, who saw the U.S. as “perhaps creating unnecessary conflict.”
Back in Washington, the pressure from the U.S. side remained steady. Even during a cultural event on January 28—an art collection celebration hosted by the Smithsonian’s National Museum of Asian Art—Commerce Secretary Lutnick took the opportunity to publicly express his hope that the Korean National Assembly would “take the pertinent measures for the implementation of trade agreements.” The message was clear: the clock was ticking, and patience was running thin.
As the diplomatic back-and-forth continued, South Korea dispatched another top official, Minister for Trade Yeo Han-koo, to the U.S. on January 30. His mission: to engage in further negotiations with the U.S. administration and Congress not only on tariffs but also on non-tariff trade barriers. The stakes, as both sides are acutely aware, are enormous. A trade war between these two economic powerhouses could have ripple effects well beyond their borders, impacting global supply chains and investor confidence.
Interestingly, some issues that might have complicated matters—such as South Korea’s regulation of online platforms or the recent customer data leak at Coupang—were, according to Kim Jung-kwan, not a factor in the tariff discussions. “I think they have determined that such issues are not significant enough to impact tariffs,” he said, putting to rest rumors that domestic regulatory debates were influencing U.S. decisions.
For now, the path forward hinges on the South Korean National Assembly’s ability to move the investment legislation through committee and onto the floor for a vote. The government’s hope is that by demonstrating good faith and legislative momentum, it can convince the Trump administration to hold off on the threatened tariff hikes. Trump himself has left the door open a crack, saying, “We will work something out with South Korea,” as reported by Yonhap.
Yet with the U.S. already preparing official statements and sanctions, and with diplomatic channels working overtime, the pressure is on for Seoul to deliver. As the world watches, the coming weeks will prove crucial—not just for South Korea-U.S. relations, but for the broader global trade landscape.
Amid the uncertainty and high-stakes maneuvering, one thing is clear: the fate of billions in trade and investment now rests on the ability of two governments—and their leaders—to find common ground before the clock runs out.