Washington, Jan 28
US President Donald Trump has said that his administration will work "something" out with South Korea after he threatened earlier this week to raise "reciprocal" tariffs and other levies on the Asian ally.
His remarks raised hopes for negotiations between Seoul and Washington to address their renewed trade tension as South Korea's Industry Minister Kim Jung-kwan is expected to visit the United States for talks with Commerce Secretary Howard Lutnick, reports Yonhap news agency.
"We will work something out with South Korea," he said during a press availability at the White House, responding to a question about whether he would increase tariffs on Korea.
On Monday, Trump made the surprise announcement of a plan to increase "reciprocal" tariffs and auto, lumber and pharmaceutical duties on South Korea to 25 percent from 15 percent, taking issue with a delay in Seoul's legislative procedures supporting the implementation of the trade deal.
Earlier on Tuesday, a White House official told Yonhap News Agency that South Korea has made "no progress" on fulfilling its end of a bilateral trade deal, although Trump lowered tariffs in line with the deal.
Under the deal struck in late July and finalised months later, Seoul has committed to investing US$350 billion in the United States, among other pledges, in return for Washington's lowering of "reciprocal" tariffs to 15 percent from 25 percent.
Trump's revived threat to raise tariffs came amid concerns in Washington over Korea's ongoing investigation into Coupang Inc., a U.S.-listed firm, over a massive customer data leak and the Asian country's moves to regulate online platform companies.
It also came amid concerns that the Korean won's weakness against the U.S. dollar could get in the way of Seoul delivering on its investment commitment under the trade deal with Washington.
- IANS
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