South Korea and U.S. Tension Over Tariff Threats: A Legislative Solution in Sight

South Korea's Industry Minister, Kim Jung-kwan, announced that the U.S. is unlikely to increase tariffs if the Korean parliament swiftly enacts investment legislation. This comes amid talks between Seoul and Washington after President Trump threatened higher tariffs due to Korea's delay in fulfilling investment commitments.

South Korea's Industry Minister, Kim Jung-kwan, indicated on Sunday that the United States may refrain from imposing higher tariffs if the Korean parliament acts promptly to pass investment legislation. This legislation is in response to commitments made to invest $350 billion in the U.S.

The discussions with Washington emerged after President Donald Trump's threat to elevate tariffs on South Korean imports to 25%. The U.S. attributed this threat to delays in South Korea's investment commitments outlined in a previously established trade agreement.

Minister Kim, speaking after discussions with U.S. Secretary of Commerce Howard Lutnick, conveyed that the U.S. expressed gratitude for Seoul's plans to approve the U.S. investment act. South Korea's Democratic Party plans a vote on March 12 to fast-track the necessary legislation.

(With inputs from agencies.)