U.S. pressures Seoul for final tariff deal

As South Korea and the United States enter the final phase of tariff negotiations, Washington is demanding that Seoul submit its “best and final” offer. U.S. President Donald Trump has added to the pressure, suggesting the talks may not be completed by the July 31 deadline.

Key sticking points remain, including the scale of South Korea’s investment in the United States and the extent of agricultural market access. In response, Seoul has broadened its proposed package to cover advanced battery and biotechnology sectors, alongside shipbuilding, semiconductors, and defense procurement.

Hyundai Motor Group Chairman Chung Eui-sun traveled to the United States just two days before the tariffs are scheduled to take effect, joining Samsung Chairman Lee Jae-yong and Hanwha Vice Chairman Kim Dong-kwan in a coordinated effort to support the negotiations.

On July 29, Trump was asked whether the trade deal with South Korea would be finalized the following day. “What do you mean finish it tomorrow?” he responded. “It won’t be finished tomorrow.” While he did not name South Korea directly, his comments suggested lingering tensions.

Earlier, the Wall Street Journal reported that U.S. Commerce Secretary Howard Lutnick, during talks in Scotland, urged South Korea to present its “best and final trade deal.” In meetings with Deputy Prime Minister Koo Yoon-cheol and Industry Minister Kim Jung-kwan, Lutnick reportedly said that when delivering the final proposal to Trump, Korea should “bring it all,” signaling pressure for a greater investment pledge.

The South Korean government has entered full mobilization. Hyundai’s Chung, the third major business leader to visit the United States, is expected to support efforts to ease auto tariffs.

“Private companies have built extensive networks in the U.S.," Presidential Policy Chief Kim Yong-beom said Tuesday. "The government is sharing key elements of the negotiating framework with them when needed, and they are also conveying feedback from meetings with senior U.S. officials.”

President Lee held a video conference with key ministers stationed in the United States, including Deputy Prime Minister Koo, to coordinate strategy. Koo is set to meet Treasury Secretary Scott Bessent on July 31, one day before the tariffs are scheduled to take effect.

Seoul is reportedly preparing a $200 billion investment package with potential additions, while Washington is seeking up to $400 billion. “We are continuing talks on semiconductors, batteries, and biotech,” Kim said. A senior official added that Seoul cannot meet every Washington demand, but the investment size remains flexible.


Kyu-Jin Shin newjin@donga.com