US-Korea Tariff Talks Stall as Steel Exports Decline and Investment Negotiations Remain Unresolved

Today, Friday September 19, 2025, we bring you the latest on U.S.–South Korea tariff news for the “South Korea Tariff News and Tracker” podcast. Tariff negotiations between South Korea and the United States are still in deadlock, putting Korean exporters in a tough spot as talks drag on. After Korea’s chief negotiator Yeo Han-koo’s recent trip to Washington, talks remain unresolved over how Korea will fulfill its $350 billion investment pledge tied to reduced tariffs. While Korea and the U.S. struck a deal in late July to lower mutual tariffs and auto tariffs from 25 percent to 15 percent, the two countries have yet to agree on the structure of Korea’s investment. Unlike Japan—which finalized its agreement by pledging $550 billion and allowing U.S. control over investment and profits—Korea is seeking to lessen its financial exposure through guarantees rather than an equity-based approach. In contrast, Japan negotiated U.S. car tariffs down from 27.5 percent to 15 percent, giving Japanese automakers a 10 percentage-point edge over Korean competitors. Commerce Secretary Howard Lutnick ramped up pressure last Friday, warning Korea to “accept the deal or pay the tariffs.” Meanwhile, Korea’s President Lee Jae Myung told TIME Magazine the demands were so strict that agreeing could risk his impeachment. On the ground, Korea’s steel industry is under strain from a 50 percent tariff imposed by the United States under President Donald Trump’s second administration, which doubled tariffs on steel and aluminum from 25 percent in June. Steel was the first sector hit this time around. In the January-to-August period, Korea’s steel exports to the U.S. dropped 15.8 percent, falling to $25.2 billion, down from $26.5 billion a year ago, as reported by Korea JoongAng Daily. Industry Minister Kim Jung-kwan announced a new $286.7 million guarantee program to help steel companies cope and emphasized that Seoul will continue to press Washington for tariff relief, while strengthening defenses against unfair import practices such as rerouted dumping. In other tariff-related headlines, the American Action Forum notes that Korean imports of washing machines to the United States surged by 600 percent in July this year compared to last July. This sudden spike is raising suspicions of tariff evasion tactics as Korean companies seek to bypass higher duties. Discussions are also underway about a potential unlimited currency swap to help stabilize Korea’s foreign exchange market as the tariff talks continue. The government insists it is presenting robust data and analysis to show Korea’s situation is distinct from Japan’s and is focused on protecting national interests. Listeners, thank you for tuning in to our coverage of the ongoing U.S.–South Korea tariff negotiations, and the implications for Korean industries. Don’t forget to subscribe for regular updates. This has been a quiet please production, for more check out quiet please dot ai. For more check out https://www. This content was created in partnership and with the help of Artificial Intelligence AI.