Korea is considering investment options in the U.S. to lower tariffs, Bloomberg News reported on the 23rd (local time). This is interpreted as an attempt to employ a strategy similar to that of Japan, which achieved a tariff agreement with the U.S. through a $550 billion investment.
Bloomberg News, citing sources, noted that "Korea discussed creating a fund to invest in U.S. projects as part of trade negotiations with the U.S.," adding that "specific details have not yet been finalized, but the U.S. is demanding a commitment of hundreds of billions of dollars in investment."
The source stated that Korea aims to reduce the reciprocal tariff of 25% and the tariff on automotive items to around 15%, similar to Japan. The source added that, like Japan's promise to increase purchases of Boeing aircraft and U.S. agricultural products, Korea could also buy more American goods in key sectors.
U.S. Secretary of Commerce Howard Liutnik proposed an investment of $400 billion to Korea, sources said. Bloomberg News reported, "The size of Japan's economy is more than twice that of Korea, making it very difficult for Korea to promise an investment of the same amount."
On the 7th, President Donald Trump stated in a letter to President Lee Jae-myung that a reciprocal tariff of 25% would be applied to Korean products. If a separate trade agreement between the U.S. and Korea is not reached by the end of this month, a 25% tariff will be imposed on Korean products starting from the 1st of next month.
Both the White House and the Ministry of Trade, Industry and Energy of Korea declined to comment to Bloomberg News.