Seoul pushes investment bill to avoid Trump tariffs

The United States is unlikely to impose higher tariffs on South Korea if parliament in Seoul approves the investment legislation demanded by Washington in the coming days, South Korean Industry Minister Kim Jung-kwan said on Sunday.

Seoul is currently negotiating with Washington after US President Donald Trump threatened to raise tariffs on imports from South Korea to 25 per cent. The United States argues that Seoul is delaying its commitment to invest $350 billion in the United States, which the two countries agreed in last year’s trade agreement.

Kim said that during talks with US Commerce Secretary Howard Lutnick it was suggested that, if South Korea approves the proposed US investment bill, the tariff increase would not be officially announced.

‘The United States expressed its gratitude for the plan to quickly approve the investment bill, and according to information from the negotiations, in that case there should be no increase in tariffs,’ Kim said in a televised speech.

South Korea’s ruling Democratic Party plans to vote on the bill on 12 March. The legislation is intended to enable the implementation of an investment package in the United States that forms part of a broader trade agreement between the two countries.

(reuters, max)