Seoul: In Scotland on Sunday, the European Union (EU) followed Japan in concluding a trade agreement with the United States. U.S. President Donald Trump announced that the reciprocal tariff rate on EU goods, previously expected to be 30 percent, would instead be reduced to 15 percent - the same level applied to Japan. The United States is scheduled to negotiate with China on July 28 and 29, leaving Korea among the last major countries still engaged in talks.
According to Yonhap News Agency, President Trump revealed that the EU had agreed to purchase $750 billion worth of U.S. energy and invest an additional $600 billion in the U.S. economy. In the case of Japan, he stated that the country would invest $550 billion at his request. By contrast, Korea's proposed investment of $100 billion falls far short, even accounting for the differences in economic scale. The Korean government now faces mounting pressure to finalize a deal with the United States before the deadline, ideally at or below the 15 percent tariff level achieved by Japan and Europe.
A major sticking point in the talks is the issue of agricultural market access. Woo Sang-ho, senior presidential secretary for political affairs, acknowledged on July 28 that "the United States is indeed requesting greater market opening." While he stressed the government's efforts to protect domestic industries, it remains unclear what outcome those efforts will yield.
What is more concerning is the ruling party's stance. In a televised debate on July 27, Democratic Party (DP) leadership candidates Jung Chung-rae and Park Chan-dae both opposed lifting the current restriction on U.S. beef imports for cattle over 30 months of age - an issue the Trump administration considers highly sensitive. Meanwhile, DP lawmakers on the National Assembly's Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee issued a statement expressing "deep regret over attempts to sacrifice agriculture in trade negotiations." Rather than supporting the government's negotiation strategy, the ruling party is acting more like an opposition bloc.
This raises questions about whether the ruling party fully grasps what is at stake. Since April, U.S. tariffs of 25 percent on Korean automobiles have contributed to a 10.8 percent year-on-year decline in passenger car exports during the first half of the year. Without a successful trade deal, Korean automakers like Hyundai and Kia risk falling behind Toyota and Mercedes-Benz in the U.S. market due to higher prices. Export losses would inevitably hurt employment.
President Lee Jae Myung has consistently emphasized that "national interest must be the guiding principle" in the tariff negotiations, calling for a pragmatic and measured approach. It is time for the government and ruling party to make clear-eyed decisions and explain their necessity to the public and stakeholders. During the 2007 Korea-U.S. FTA negotiations, then-President Roh Moo-hyun faced fierce protests and even hunger strikes by senior lawmakers in his own party, yet reaffirmed his commitment to concluding the deal. To manage the fallout of any new agreement, today's leadership must show greater responsibility and cohesion than it has so far.