Turmoil in Trade: US-South Korea Negotiations and Investment Uncertainty

The trade negotiations between the United States and South Korea hit several key milestones from April 2025 to January 2026. The two countries grappled with tariffs, currency safeguards, and investment packages, facing challenges such as political tensions and financial market volatility.

The trade negotiations between the United States and South Korea have experienced several notable events from April 2025 to January 2026. These discussions were marked by U.S. President Donald Trump's initial tariff threats and culminated in tentative agreements that balanced investment promises with tariff adjustments.

Starting in April 2025, the United States enforced a 25% tariff on South Korean imports, leading to a series of negotiations resulting in a preliminary agreement that aimed to lower certain tariffs. Despite the talks, tension persisted, exemplified by incidents such as the arrest of South Korean workers in Georgia and the debate over a substantial $350 billion investment package.

The negotiations continued to face hurdles, including currency issues and trade imbalances, until President Trump and South Korean leadership concluded some terms at an Asia-Pacific summit. Yet, U.S.-South Korea trade relations remained complex due to events like the Coupang data breach and ensuing political scrutiny, underscoring the fragile nature of international economic partnerships.

(With inputs from agencies.)