South Korea Faces U.S. 25% Tariff Threat, Seeks Summit Amid Trade Talks

South Korea is facing a looming 25-percent tariff threat from the United States, set to begin on August 1, as part of President Donald Trump’s global trade policy restructuring aimed at addressing perceived unfair trade imbalances. Despite the tariff warning, South Korean officials, including National Security Adviser Wi Sung-lac, have engaged in talks with U.S. officials and expressed optimism about reaching a mutually beneficial agreement, even proposing a bilateral summit. President Trump sent a letter to South Korean President Lee Jae-myung, emphasizing the tariff threat if new trade deals are not secured, with additional penalties if South Korea raises its own tariffs. South Korea, heavily reliant on exports to the U.S., especially in autos and cosmetics, is balancing these trade negotiations with concerns about national security and its alliance with the U.S. The Bank of Korea has kept its key interest rate steady at 2.5% amid these external economic pressures and domestic challenges like rising housing prices and sluggish consumption. South Korean leadership appears determined to protect national interests, even if it means delaying a quick trade deal with the U.S.