The Trump administration is applying heightened pressure on South Korea regarding trade relations, particularly focusing on non-tariff barriers which American officials claim are contributing to a trade deficit. Jamie Grier, the U.S. Trade Representative, presented South Korea with data highlighting its significant trade deficit and indicated that the U.S. may impose tariffs if South Korea fails to eliminate these barriers. Grier referenced Japan as an example of a country that has taken proactive steps to remove non-tariff barriers, leaving South Korea needing to respond effectively to avoid potential tariff increases.

The ongoing discussions about non-tariff barriers have been complicated by the fact that the official channel for such discussions, the U.S.-Korea Free Trade Agreement (FTA) Joint Committee, has been stalled since December after the U.S. unilaterally withdrew. The U.S. had expressed dissatisfaction with South Korea's concessions regarding non-tariff issues and flagged concerns about a proposed digital regulation bill. Following South Korea's passage of the Information and Communications Network Act, the U.S. State Department issued a statement of disapproval, suggesting serious unresolved tensions in the digital regulation space remain.

Additionally, the issue surrounding Coupang, a major e-commerce platform, has also created friction in relations, with indications from U.S. officials that there are lingering concerns. During a recent meeting with South Korea’s Foreign Minister, U.S. officials made veiled references to the company, signaling that the U.S. government is keeping a close watch on how South Korea manages its domestic digital policies and their impact on American companies. This reflects a complex and precarious trade relationship where both sides are under pressure to find common ground amid significant economic interdependencies.