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U.S. Treasury Secretary Scott Bessent stated on the 28th (local time) that "because the South Korean National Assembly has not passed the trade agreement, there is no trade agreement with South Korea until they ratify it."
In an interview with CNBC, when asked if President Donald Trump is raising tariffs because South Korea failed to approve the trade deal, Bessent replied accordingly. The term "ratify" used by Bessent and the interviewer is interpreted as referring to the South Korean National Assembly's processing of the 'Special Act on Investment in the U.S.'
Secretary Bessent emphasized that the signal from the Trump administration is for South Korea to "sign the trade agreement." Regarding whether South Korea would face a 25% tariff until ratification, he noted, "I believe this helps move the situation forward." This remark is seen as an expectation that the tariff threat will expedite the passage of the legislation in Korea.
President Trump previously posted on Truth Social on the 26th, announcing an increase in reciprocal tariffs on automobiles, lumber, pharmaceuticals, and other goods from 15% to 25%, citing the Korean legislature's failure to codify the "historic trade agreement." However, the following day, he hinted at the possibility of suspending the hike depending on consultations.
As of now, no executive order or official gazette regarding the tariff increase has been issued. Meanwhile, South Korea's Minister of Trade, Industry, and Energy, Kim Jung-kwan, is scheduled to meet with U.S. Commerce Secretary Howard Lutnick in Washington D.C. to clarify the U.S. position and explain Korea's domestic situation.
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