SEOUL — High-level tariff negotiations between South Korea and the United States concluded without a breakthrough on Friday, January 30, 2026, as both sides deepened their understanding of each other's positions but failed to reach a final deal amid renewed trade tensions, South Korean media reported Saturday.
Industry Minister Kim Jung-kwan and US Commerce Secretary Howard Lutnick held a second consecutive day of talks in Seoul, according to Yonhap News Agency. Emerging from the meeting, Minister Kim told reporters: “Our understanding of each other’s positions has deepened. There were discussions on how to find a middle ground. We need more talks. We have not yet reached a conclusion.”
Kim declined to specify when any new US tariffs would take effect, stating only that “negotiations are ongoing.” He described the discussions as constructive but acknowledged that significant gaps remain unresolved.
The impasse follows President Donald Trump’s announcement on Monday, January 27, 2026, that the US would raise tariffs on several categories of South Korean goods from 15% to 25%. Trump specifically targeted autos, lumber, and pharmaceuticals, accusing Seoul’s legislature of failing to approve a previously agreed bilateral trade and investment deal.
Trump appeared to reference a pending investment authorization bill that South Korea’s ruling Democratic Party plans to bring to a vote in the National Assembly next month. The bill seeks bipartisan support from the opposition to formalize South Korea’s $350 billion investment pledge in the US, a commitment made to secure lower reciprocal tariffs.
Under a memorandum of understanding signed in November 2025, South Korea agreed to invest $200 billion in cash installments — capped at $20 billion annually — alongside $150 billion in bilateral shipbuilding cooperation. In exchange, Washington reduced tariffs on South Korean imports to 15%, as initially agreed in July 2025.
South Korean officials have repeatedly urged the US to honor the existing arrangement while the investment bill advances through the legislative process. Critics in Seoul argue that Trump’s tariff threat is premature and risks undermining confidence in bilateral economic relations at a time when South Korea faces domestic political uncertainty and global supply-chain pressures.
The Commerce Ministry in Seoul stated that talks would continue at the technical level, with both sides committed to finding a mutually acceptable resolution. Minister Kim emphasized that South Korea remains ready to fulfill its investment commitments once domestic legislative procedures are completed.
Automakers, including Hyundai Motor Group and Kia Corporation, expressed concern over the proposed 25% tariff hike, warning that it could significantly impact their competitiveness in the US market — South Korea’s largest export destination for vehicles. Industry analysts estimate that a sustained 25% duty could reduce South Korean auto exports to the US by 15–20% in value terms.
The renewed tariff friction comes amid broader US trade policy shifts under President Trump’s second term, including higher duties on imports from multiple trading partners and a focus on “reciprocal” trade balances. South Korea has been one of several Asian allies navigating these changes, balancing strategic security ties with economic realities.
No immediate date has been set for the next round of talks, though both governments indicated that discussions would continue “in the near future.” The outcome of the National Assembly vote on the investment bill next month is expected to be a pivotal factor in determining whether tariffs are ultimately raised or the November memorandum is fully implemented.
As of Saturday evening, neither the White House nor the US Department of Commerce had issued a public response to Minister Kim’s comments or provided a timeline for tariff implementation.
The unresolved tariff dispute adds another layer of uncertainty to South Korea-US economic relations at a time when both countries are also coordinating closely on regional security issues, including responses to North Korea’s nuclear and missile activities.
