South Korea Weighs Japan-U.S. Trade Deal in Ongoing U.S. Negotiations

South Korea will use Japan’s recent trade agreement with the United States as a reference while finalizing its own deal, Finance Minister Koo Yun-cheol said Monday. The minister explained that Japan’s outcome offers both advantages and challenges but provides Seoul with leverage in talks with Washington.

Japan’s trade deal, signed into effect by President Donald Trump last week, reduced U.S. tariffs on Japanese car imports to 15% from 25%. This has left South Korean automakers at a competitive disadvantage, as their vehicles still face the 25% tariff. Koo stressed that Seoul would negotiate to protect national interests and push for fair treatment in the auto sector.

The agreement under discussion includes a $350 billion investment package, with Seoul aiming to channel funds into effective U.S. projects. In addition, South Korea and the United States are negotiating foreign exchange policy terms, which will be announced once talks conclude.

Koo highlighted growing uncertainty from global tariff policies, noting that the Trump administration is seeking to preserve sweeping tariffs under a 1977 emergency law despite recent legal challenges. He pledged to introduce new strategies by October to address shifts in the global trade environment and strengthen South Korea’s competitiveness.

The minister also addressed concerns over labor issues after a U.S. immigration raid detained hundreds of Korean workers at a Hyundai plant under construction in Georgia. He assured that the government would coordinate with Washington to prevent such incidents from undermining South Korean investments in the United States.

Koo emphasized that South Korea must prepare for every possible scenario in trade and economic policy, making it “more pressing than ever” to respond swiftly to external changes such as tariffs and investment rules.