U.S.–Korea tariff talks stuck in deadlock: Substance over speed

Rather than pursuing a quick APEC headline, Seoul should seek a practical, trust-based outcome that reinforces both alliance and mutual benefit.

President Lee Jae Myung arrives at the Kuala Lumpur Convention Centre in Malaysia for the Korea-ASEAN Summit on October 27, local time, accompanied by Prime Minister Anwar Ibrahim. [JOINT PRESS CORPS]

President Lee Jae Myung said in a Bloomberg interview on Oct. 26 that discussions between Seoul and Washington over Korea’s $350 billion investment in the United States remain at an impasse. “The structure, amount and timetable of the investment, as well as how losses and dividends will be shared, are all still points of contention,” he said, signaling that the talks — once seen as nearing conclusion — are still stalled.

Lee’s remarks contrasted with the optimism of U.S. President Donald Trump, who said on Oct. 24 before departing on his Asia trip that the two sides were “very close to a deal” and that he was “ready if they are.” His comments appeared aimed at pressing Seoul for concessions ahead of the bilateral summit scheduled for Oct. 29.

Yet observers say Trump’s expectations are unlikely to be met. Oh Hyun-joo, the third deputy national security adviser, told foreign correspondents yesterday that a breakthrough during the APEC summit was improbable. “The negotiating team is focused on commercial rationality and ensuring that any outcome benefits the Korean economy,” she said, indicating that Seoul will not agree to symbolic compromises merely for show.

As negotiations drag on, Korean exporters already hit by U.S. tariffs are feeling mounting pressure. Companies with existing or planned investments in the United States are also facing growing uncertainty. While both governments hope for an early resolution, a hasty agreement could prove costly. Speed should not come at the expense of long-term stability.

Yielding to Trump’s excessive demands would be equally unwise. Even U.S. media outlets have criticized his position. The Wall Street Journal reported that the proposed $350 billion investment amounts to roughly 6.5 percent of Korea’s GDP over the next three years, calling Trump’s approach an “attempt to extort the Korean government through unilateral tariff measures.”

In the Bloomberg interview, Lee said, “The United States will naturally seek to maximize its own interests, but that cannot come at a ruinous cost to Korea. Delays do not necessarily mean failure.” His assessment is sound. Tariff negotiations affect Korea’s exports, currency markets, investment, and employment. Even if it takes more time, the government must stay focused on national interest and negotiate with composure. Rather than pursuing a quick APEC headline, Seoul should seek a practical, trust-based outcome that reinforces both alliance and mutual benefit.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.