INCHEON—South Korea is unlikely to face additional U.S. tariff increases, Trade Minister Kim Jung-kwan said Sunday after wrapping up his visit to Washington.
"I met with U.S. Commerce Secretary Howard Lutnick and explained the legislation that will pass our National Assembly next week," Kim told reporters at Incheon International Airport. "The U.S. side highly appreciated this and expressed gratitude."
Kim said he received indications that "if Korea passes the Special Act on U.S. Investment and implements the contents of the Korea-U.S. negotiations, there will likely be no gazette publication or other measures related to tariff increases."
U.S. President Donald Trump had previously threatened to raise reciprocal and item-specific tariffs from 15% to 25%, citing delays in the Korean legislature's passage of the investment bill. Korea's ruling and opposition parties have since agreed to pass the legislation at a plenary session on June 12.
Regarding the $350 billion U.S. investment project, Kim said both sides held "in-depth discussions on sectors and directions, though not on specific projects."
Following the U.S. Supreme Court's ruling against reciprocal tariffs, Korea also negotiated to avoid disadvantageous treatment under the Trump administration's proposed 15% global tariff. "We left open the possibility of receiving equal or even better treatment compared to competing countries," Kim said.
On the Section 301 trade investigation petition filed with the U.S. Trade Representative by Coupang investors alleging discriminatory treatment, Kim said both governments exchanged views. "The U.S. side maintained that American companies should not face discriminatory treatment, and we explained that this is a domestic legal issue involving large-scale personal data breaches and that we are responding accordingly," he said. "I believe we reached mutual understanding."
Deputy Trade Minister Yeo Han-koo, who met with USTR Jamieson Greer during the trip, said both sides agreed that convening the Korea-U.S. Free Trade Agreement Joint Committee "would help stabilize the uncertain trade environment" once preparations are complete. "Technical discussions are currently making progress," he added.
Kim also outlined measures to address surging oil prices amid Middle East tensions. He said preparations for a petroleum price cap system ordered by President Lee Jae-myung are "nearly complete."
"We plan to monitor market conditions and respond accordingly. If we decide to implement it, we are ready to act immediately," Kim said.
Addressing concerns about fiscal burdens from the price cap, Kim said preparations for those issues are also complete and details will be announced at the appropriate time.
On Yeochun NCC's declaration of force majeure to major customers due to oil supply disruptions from the Strait of Hormuz blockade, Kim noted that "petrochemical companies integrated with refineries have some flexibility, but Yeochun NCC, which focuses on petrochemicals, appears more affected." He said the government will announce naphtha-related measures soon.