Seoul: Korea and the United States reached a long-awaited tariff agreement on Wednesday, but differences are already emerging over key details. The deal allows Korea to invest US$200 billion of its $350 billion U.S. investment fund over 10 years, with the remaining $150 billion devoted to shipbuilding cooperation projects. Washington agreed to lower mutual tariffs and auto and parts tariffs to 15 percent and to apply semiconductor tariffs at levels similar to those for Taiwan.
According to Yonhap News Agency, while the agreement reduces trade uncertainty, major hurdles remain. The most urgent task is easing the 50 percent tariffs still imposed on steel, aluminum, and related products, which have hit small and appliance manufacturers hardest. Seoul must also navigate the National Assembly's ratification process for the U.S. investment plan, expected to draw opposition over its fiscal impact.
Discrepancies in public statements by both governments also signal friction ahead. U.S. Commerce Secretary Howard Lutnick wrote on X that "semiconductor tariffs are not part of this agreement," contradicting remarks from Kim Yong-beom, policy chief at the presidential office, who said tariffs on Korean semiconductors would match Taiwan's. Lutnick also claimed Korea had agreed to fully open its domestic market, a statement that conflicts with Seoul's insistence that it protected sensitive agricultural sectors such as rice and beef.
Negotiations over investment priorities may also prove contentious. Despite Seoul's pledge to ensure "commercial rationality" and tangible benefits for the Korean economy, Lutnick said investment items would include Alaska's natural gas pipelines, AI development, and energy infrastructure projects -- remarks that suggest Washington intends to steer the deal to its advantage. Each comment hints at future bargaining battles, reminding both sides that agreement on broad terms does not mean consensus on details.
Officials warn against repeating the missteps of the first negotiation round in July, when Seoul declared "a deal" prematurely only to be slowed by unresolved specifics. In trade talks between allies, neither side can expect to win outright. The government must therefore be transparent about trade-offs, seek public understanding, and avoid overpromising. As the saying goes, "the devil is in the details." Korea's challenge now is to stay patient and vigilant to secure its interests to the very end.