US And South Korea report progress on tariff discussions

Monday 02 - 15:00

By: Sahili Aya

US And South Korea report progress on tariff discussions

South Korea announced on Monday that talks with the United States on tariff-related issues are making progress, following recent diplomatic exchanges between officials from both countries.

Prime Minister Kim Min-seok stated that multiple communication channels between Washington and Seoul are currently active, including direct contact with US Vice President JD Vance. According to South Korean media, these discussions have helped clarify intentions on both sides after recent tensions over potential tariff increases.

The remarks come after US President Donald Trump signaled a possible hike in tariffs on South Korean goods, raising concerns in financial markets and triggering criticism over Seoul’s readiness to respond. The proposed increase, from 15% to 25%, sparked uncertainty among investors and policymakers.

Kim emphasized that the situation stemmed largely from President Trump’s distinctive communication style rather than a breakdown in bilateral relations. He added that South Korean trade officials were swiftly dispatched to Washington to engage with their US counterparts and stabilize the situation.

The prime minister also dismissed speculation linking the tariff threat to a South Korean investigation involving a US-listed e-commerce company, calling such interpretations inaccurate.

Despite diplomatic reassurances, markets reacted sharply. South Korean stocks fell by more than 5%, while the national currency weakened against the US dollar as the benchmark index closed significantly lower.