Seoul stalls trade talks, wary of Japan-style deal while awaiting US court decision on Trump’s “reciprocal” tariffs

South Korea’s Industry Minister Kim Jung-kwan returned to Seoul on Sunday after two days of tariff talks in New York with U.S. Commerce Secretary Howard Lutnick, but neither side reported progress on finalizing their July tariff agreement. Kim told reporters only that “bilateral consultations are ongoing,” while Lutnick has publicly insisted there is “no flexibility,” warning that Seoul must accept the deal or face the full 25% “reciprocal” tariffs.

The July tariff agreement lowered Washington’s threatened tariffs on South Korean goods to 15% in exchange for a pledged $350 billion Korean investment in U.S. projects, but the two governments remain divided over the share of direct capital, project selection and profit distribution. Lutnick has repeatedly pointed to Japan’s recent agreement, which gives the U.S. sweeping control over investment choices and a dominant share of profits, as the model for Seoul to follow.

South Korea’s Industry Minister Kim Jung-kwan returned to Seoul on Sunday after two days of tariff talks in New York with U.S. Commerce Secretary Howard Lutnick, but neither side reported progress on finalizing their July tariff agreement. Kim told reporters only that “bilateral consultations are ongoing,” while Lutnick has publicly insisted there is “no flexibility,” warning that Seoul must accept the deal or face the full 25% “reciprocal” tariffs.

The July tariff agreement lowered Washington’s threatened tariffs on South Korean goods to 15% in exchange for a pledged $350 billion Korean investment in U.S. projects, but the two governments remain divided over the share of direct capital, project selection and profit distribution. Lutnick has repeatedly pointed to Japan’s recent agreement, which gives the U.S. sweeping control over investment choices and a dominant share of profits, as the model for Seoul to follow.

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