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South Korea “won’t struggle again” in opposition to US tariffs, its performing president has stated, citing the nation’s historic debt to Washington forward of commerce talks with Donald Trump’s administration set to start subsequent week.
Han Duck-soo, a technocrat serving as performing president following Yoon Suk Yeol’s removal from office this month by the nation’s constitutional courtroom, stated “the function of the US was enormous in making Korea what it’s now”.
“After the devastation of the Korean warfare . . . the USA gave us help, know-how switch, investments and safety assurances,” which helped make South Korea “a really comfy funding atmosphere for foreigners”, Han instructed the Monetary Occasions in an interview.
“Our industrial prowess and our monetary growth and our tradition and progress and wealth are very closely as a result of assist from the USA,” he added.
In mild of this debt of gratitude, Seoul — one in all Washington’s closest safety allies and financial companions in Asia — would enter negotiations with Trump searching for to seek out “options that are extra win-win for each, quite than taking their actions as the target in opposition to which we must always struggle again”, Han stated.
South Korean officers have been dismayed when Trump introduced a 25 per cent “reciprocal” tariff on the nation this month, regardless of a free commerce settlement beneath which South Korea in impact doesn’t levy tariffs on American items.
Korean automotive giants Hyundai and Kia have been additionally hit by a separate 25 per cent US levy on automakers, whereas the nation’s chipmakers and pharmaceutical firms are going through potential tariffs beneath a national security probe introduced by Washington this week.
South Korea’s main conglomerates are spending tens of billions of {dollars} to construct superior manufacturing vegetation for chips, electrical automobile batteries and photo voltaic panels.
However Seoul’s commerce surplus with the US has additionally risen sharply, reaching a report $55bn in 2024 after the US supplanted China as its largest export vacation spot.
Han, who stated he had a “good”, 28-minute cellphone name with Trump earlier this month, stated South Korea was prepared to debate decreasing its commerce surplus, together with by buying US liquefied pure fuel and business airliners. He added that elevated co-operation in naval shipbuilding “could assist the US in strengthening their alliances”.
He additionally stated Seoul was prepared to debate South Korea’s non-tariff commerce limitations. Amongst long-standing US grievances are Seoul’s auto emissions rules, opaque pharma pricing, refusal to import some American beef and community charges on US content material suppliers resembling Netflix.
Han conceded that some industries “could endure some issues” on account of the negotiations, however stated a broader liberalisation of commerce between the 2 international locations would “improve the welfare of the Korean individuals”.
The Trump administration additionally started trade talks with Japan this week, because the White Home prioritises shut allies in an effort to safe some offers and start to roll again the president’s sweeping commerce warfare, which has roiled world markets.
Trump, who throughout his first time period threatened to drag US troops out of the Korean peninsula, stated this month that negotiations with Seoul would explicitly hyperlink commerce and safety points, together with “fee for the massive time navy safety we offer to South Korea” — a possible main concern for Seoul, which depends upon US safety from the North Korean nuclear menace.
Han confused there was not but any “clear framework” for discussing safety however signalled a willingness, “relying on the problems”, to reopen a cost-sharing deal concluded with the Biden administration final yr regarding the 28,500 US troops stationed in South Korea.
Han, an unelected official who additionally serves as prime minister, bristled at questions regarding his authority to conduct negotiations that would reshape the US-South Korea relationship for years to return.
Opposition events have raised issues {that a} deal negotiated by Han would bind the fingers of his elected successor. South Korea is due to hold a snap presidential election in early June to exchange Yoon, who was impeached and faraway from workplace over his failed try and impose martial regulation final yr.
Han strongly rejected the suggestion {that a} commerce deal he negotiated would lack democratic legitimacy, arguing that his mandate got here “from the structure and related legal guidelines” and “there is no such thing as a distinction between what performing presidents or elected presidents can do”.
Calls are additionally mounting amongst some South Korean conservatives for Han, a Yoon appointee who has by no means held elected workplace, to face for president himself. Supporters regard him as a supply of stability amid the disarray inside Yoon’s Individuals’s Energy celebration following the martial regulation debacle.
However Han demurred on whether or not he would run for president, saying he had “not but” decided. Pushed on whether or not he was contemplating a bid, he stated: “No remark.”
