Seoul, March 8 Industry Minister Kim Jung-kwan said on Sunday he has been told the United States is not likely to hike tariffs on South Korea if the National Assembly passes a special bill on Seoul's $350 billion investment pledge to the US.
Kim made the remarks upon arrival after visiting the U.S. to meet with Commerce Secretary Howard Lutnick to discuss tariff and bilateral trade issues following U.S. President Donald Trump's threat in January to hike "reciprocal" tariffs and other duties on South Korea, reports Yonhap news agency.
"At a meeting with Lutnick, I explained the special investment bill that is expected to pass at the National Assembly next week. In response, the U.S. side very highly evaluated it and expressed appreciation," Kim told reporters at Incheon International Airport, west of Seoul.
"If the bill is passed or South Korea implements things related to trade negotiations (between Seoul and Washington), I've heard that there would be no such things like publishing in the Federal Register on tariff hikes," he added.
Trump threatened in January to raise "reciprocal" tariffs and auto, lumber and pharmaceutical duties on South Korea to 25 percent from 15 percent, citing a delay in the parliamentary process to pass the investment bill.
The bill is widely expected to pass Thursday as rival political parties have agreed to pass it "without delay" in consideration of the national interest.
Kim's latest trip was aimed at easing uncertainty surrounding the U.S. tariff policy following a recent U.S. Supreme Court ruling that struck down Trump's reciprocal tariffs.
In response, the Trump administration began imposing a 10 percent "global tariff" under Section 122 and the rate could rise to 15 percent as Trump threatened to do so.
In regard to the global tariff, Kim said he had consultations with the U.S. to ensure that Seoul is not disadvantaged against other countries.
The minister said he also discussed with Lutnick a petition filed by U.S. investors in e-commerce firm Coupang Inc. seeking a Section 301 probe.
"The U.S. has the position that U.S. companies should not receive discriminatory treatment. We explained that Coupang's case was a domestic legal issue involving a massive data breach and we will respond accordingly," Kim said.
"I believe Secretary Lutnick and I had a mutual understanding on this matter."
In regard to an oil price cap system that President Lee Jae Myung instructed officials to review amid concerns about a surge in oil prices, Kim said the government "has almost completed preparations" to adopt the scheme.
"We will respond after monitoring the market situation and take measures to ensure an immediate implementation, if needed," the minister noted.
Meanwhile, Trade Minister Yeo Han-koo also returned home after visiting the U.S. to meet with U.S. Trade Representative Jamieson Greer last week for discussions on tariff and non-tariff issues.
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