U.S. President Donald Trump issued an ultimatum on the 7th (local time) threatening to impose a 25% reciprocal tariff on Korea starting next month.
On the same day, President Trump revealed a letter sent to President Lee Jae-myung on his social media platform Truth Social, expressing discontent that "the trade relationship with Korea has not been fair for a long time."
He claimed that "the number 25% is far from what is necessary to resolve the trade deficit gap," suggesting the possibility of further pressure. He warned that if Korea responds with retaliatory tariffs, it would "add to the 25% that we imposed by the amount you choose to raise."
President Trump's action this time was notified simultaneously to about 12 countries. Among them, only the letter sent to the leaders of Korea and Japan was disclosed in full on social media.
In response to the question, "Why were the two countries specifically named?" the White House answered, "It is the president's prerogative," stating only that "the president chose those countries."
Some experts analyzed that there is a clear economic and political calculation underlying this background.
Korea and Japan are representative trading partners for the U.S., recording substantial trade deficits. According to the U.S. Census Bureau, last year the United States recorded a trade deficit of $66 billion with Korea and $69.4 billion with Japan. This is why President Trump emphasized "imbalance" and "reciprocity" in his letter.
At the same time, both countries are automotive powerhouses directly linked to President Trump's key support base.
Trump imposed tariffs of 25% on Korean cars and parts and 50% on steel and aluminum immediately after his re-election. The current 25% reciprocal tariff is said not to be added to the existing tariffs.
Experts believe he has clearly demonstrated his intention to pressure all factors that could restrain the U.S. automotive industry, to push forward his campaign promise of reviving manufacturing and creating jobs.
Our government viewed the timing of the tariff imposition set for the 1st of next month as "effectively an extended deadline" and stated its position to expedite negotiations during the remaining period.
The government acknowledged that there was insufficient physical time since the new administration's launch and said it would consider improving domestic systems to address the trade deficit, which the U.S. is primarily concerned about.
The White House announced that President Trump would sign an executive order extending the tariff negotiation deadline to August 1. As a result, about three weeks of frantic additional negotiations are expected to follow.
President Trump also left room for negotiation, stating, "If Korea eliminates trade barriers, I will consider adjusting tariffs."
The two countries failed to find common ground during the 90-day grace period. Experts suggest that the ongoing imposition of tariff policies, including automotive tariffs, makes it difficult to propose additional concessions hastily, slowing down negotiations.
Wendy Cutler, vice president of the Asia Society Policy Institute, said, "An increase in tariffs on America's closest allies is unfortunate," but added, "The game is not over yet," keeping the possibility of reaching a negotiated settlement open.
Josh Lipsky, senior fellow at the Atlantic Council, analyzed that "the fact that he gave three more weeks signifies that Trump is serious about the tariff issue and is not approaching it with a simple negotiation style."