Korean Minister of Trade, Industry and Energy Kim Jong-kwan stated that U.S. Commerce Secretary Howard Lutnick reassured him not to worry about potential increases in tariffs due to the Section 301 investigation by the Trump administration. This investigation raised concerns that Korea's tariff burden could exceed the agreed 15% between the two countries last year.
In an appearance on MBN News Wide on June 5, Kim explained details of his video meeting with Lutnick on June 3. "I was worried, but Secretary Lutnick said not to worry. He indicated that the originally agreed 15% would remain in place," Kim said. He added, "This is part of our ongoing investment projects in the U.S., which were built on mutual trust between the two leaders. We discussed how to ensure these efforts succeed."
Earlier, on June 2, the U.S. Trade Representative (USTR) announced the results of its Section 301 investigation related to forced labor, warning of new tariffs affecting 60 countries. Among these, 45 countries, including Korea, China, and Japan, could face a 12.5% tariff, while 14 countries and the European Union are expected to see a 10% tariff. However, concerns have been raised that the final tariff rates could exceed 15% as the Trump administration plans to release additional findings related to overproduction.
Last year, Korea agreed to invest $350 billion (approximately 540 trillion won) in the U.S. in exchange for reducing mutual tariffs from 25% to 15%. However, the mutual tariff based on the International Emergency Economic Powers Act (IEEPA) was ruled invalid by the U.S. Supreme Court this year. In response, the Trump administration announced a 10% global tariff based on Trade Act Section 122, which is set to expire in July. The administration is planning to impose new tariffs based on Section 301 as a replacement.
Regarding Korea's investment in the U.S., Kim mentioned, "We will launch the U.S. Investment Corporation on June 18. We are currently having extensive discussions among our teams to determine if this project is viable and mutually beneficial for both countries." He emphasized, "I believe the trust built over the past year, especially between the two leaders, remains strong. We are continuously discussing strategic mutual benefits and ensuring the commercial viability of these projects."
Meanwhile, when asked about this year's export outlook, Kim stated, "I officially expect our exports to exceed $900 billion this year. We are currently ranked around seventh in exports, but we aim to break into the top five."
* This article has been translated by AI.
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