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South Korea Resolves Trade "Misunderstandings" With US After Trump Tariff Threat

South Korea's Industry Minister Kim Jung-kwan stated that "unnecessary misunderstandings" were resolved during talks with U.S. Commerce Secretary Howard Lutnick, though the meetings concluded without a final agreement. The discussions were prompted by U.S. President Donald Trump's threat to raise tariffs on South Korea, citing delays in the Asian nation's legislative process to implement a bilateral trade deal. Kim explained that South Korea has no intention of delaying the agreement and expects the necessary bill to be processed quickly. Both sides acknowledged a deepened mutual understanding of positions but recognized the need for further talks.

Key Points: US-South Korea Trade Talks Resolve Misunderstandings

  • Talks followed Trump's tariff threat
  • No conclusion but understanding deepened
  • Delay in Korean legislative process cited
  • $350 billion investment deal at stake
2 min read

Industry minister says 'unnecessary misunderstandings' resolved via tariff talks with US

South Korea's industry minister says talks with the US resolved "unnecessary misunderstandings" over tariffs and a delayed trade deal implementation.

"I believe some unnecessary misunderstandings have been resolved. - Kim Jung-kwan"

Seoul, Jan 31

South Korea's Industry Minister Kim Jung-kwan said on Saturday that he thinks "unnecessary misunderstandings" were resolved through his talks with U.S. Commerce Secretary Howard Lutnick in Washington over renewed trade tensions this week.

Kim made the remark upon his return home at Incheon International Airport in Incheon, west of Seoul, after holding meetings at the Commerce Department on Thursday and Friday (US time), which ended without reaching a conclusion, reports Yonhap news agency.

"Our mutual understanding has deepened significantly," Kim said. "I believe some unnecessary misunderstandings have been resolved."

Kim's trip came after U.S. President Donald Trump threatened Monday to raise "reciprocal" tariffs and auto duties on South Korea to 25 percent from 15 percent, citing delays in the Asian country's legislative process supporting the implementation of a bilateral trade deal.

Last year, the two countries agreed on a trade deal under which South Korea would invest $350 billion in the United States in return for a cut in tariff rates.

The ruling Democratic Party submitted a bill to parliament in November to implement the bilateral trade and investment deal, which has yet to be passed.

"We have sufficiently explained that the South Korean government has no intention at all not to implement the tariff agreement (reached then) nor delay it," Kim said.

The industry minister noted that the special bill is expected to be processed quickly and explained the background of the delay to the U.S. side.

Meanwhile, Jung-kwan his talks with US Commerce Secretary Howard Lutnick over renewed trade tensions ended without reaching a conclusion, but their understanding of each other's positions has "deepened."

They met at the Commerce Department in Washington for the second straight day, after U.S. President Donald Trump's threatened on Monday to raise "reciprocal" tariffs and auto duties on Korea to 25 percent from 15 percent, citing a delay in the Asian country's legislative process supporting the implementation of a bilateral trade deal.

"Our understanding of each other's positions has deepened. There were discussions on how to find a middle ground," Kim told reporters as he walked out of the Commerce Department.

"We need more talks. We have not yet reached a conclusion," he added.

- IANS

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Reader Comments

S
Sarah B
"Unnecessary misunderstandings resolved" sounds like diplomatic speak for "we talked but nothing is fixed." It's worrying when legislative delays in a democracy lead to such aggressive threats from a partner. Hope they find a middle ground soon.
A
Ananya R
This is why we need strong domestic manufacturing. Relying too much on exports makes you vulnerable to these tariff games. "Make in India" is the right long-term vision. Jai Hind! 🇮🇳
V
Vikram M
$350 billion is a huge investment commitment. No wonder the US is getting impatient. But parliamentary processes take time; that's how democracies work. The US should understand that better than anyone.
M
Michael C
As someone working in international trade, I have to respectfully disagree with the minister's optimistic tone. Talks ending without a conclusion is not a success. "Deepened understanding" doesn't prevent tariffs. South Korea needs a concrete timeline to avoid economic damage.
P
Priya S
The article mentions the bill was submitted in November. It's only been a couple of months! Our own parliament sometimes takes much longer to pass important bills. This pressure seems unfair. Hope diplomacy wins.

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