South Korea scrambles to pass U.S. investment bill after Trump threatens higher tariffs
The United States is agreeing to impose a 15% tariff on imports from South Korea under a trade agreement for the vast majority of South Korean products, seen in this photo in Brussels, Belgium, on August 1, 2025.
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South Korea’s ruling Democratic Party said it would introduce special legislation on the US trade deal by the end of February after US President Donald Trump threatened higher tariffs on South Korean exports, according to Yonha.
Earlier on Tuesday, Trump said he would raise tariffs on South Korean exports to 25% from the current 15%, citing a delay in the country’s parliament approving the Washington-Seoul trade deal signed in July last year.
Ruling Democratic Party Spokesperson Kim Hyun-jung in question Trump was likely referring to the Strategic Investment Management Special Law between Korea and the United States, according to a Google translation of the Korean statement submitted to the country’s parliament last November.
bill, one state-run investment company Managing Seoul’s $350 billion investment promise to Washington.
Kim stated that the five relevant bills have been submitted to the National Assembly and are planned to be reviewed, adding, “The fact that both the Democratic Party of Korea and the People Power Party have proposed these bills will likely accelerate their passage.”
Ruling DP currently has 162 seats There are four vacant seats in the 300-seat National Assembly, while the PPP has 107 seats.
“What is needed now is to quickly verify the intent and facts of the US statement and correct misunderstandings,” he said.
Earlier in the day, the South Korean presidential office said it had not received any official notification or statement from the United States regarding the announcement, according to South Korean media outlet Yonhap.
South Korea’s finance ministry said it would inform the United States about the legislative process, while Seoul’s commerce ministry said industry minister Kim Jung-kwan would visit Washington to discuss the issue. Yonha reported.
“It is time for the government and the ruling and opposition parties in the National Assembly to join forces. I look forward to the People Power Party’s bipartisan cooperation,” Kim said. he said.
South Korean automakers Hyundai and Kia tumbled in early trading following Trump’s threats but later recouped their losses. Hyundai was last traded down 0.1%, while Kia was down 1.16%. The broader Kospi rose 1.9%, while the small-cap Kosdaq index rose 0.89%.
