Jamieison Greer, the U.S. Trade Representative, recently conveyed serious concerns regarding South Korea's efforts to address non-tariff barriers, stating that unless Korea demonstrates genuine effort and takes concrete actions, mutual tariffs might have to be increased. During discussions with senior Korean officials, Greer highlighted the significant trade deficit with South Korea and underscored the need for Korea to rebalance the trade relationship. He criticized the lack of a responsible negotiating counterpart in Korea regarding non-tariff issues, expressing frustration over Korea’s lack of engagement in this critical area.

Greer's emphasis on the resolution of non-tariff barriers, which include digital regulations such as the Online Platform Act, as well as agricultural and food inspections, indicates a broader scope of negotiation issues that extend beyond just tariffs. This aligns with the U.S. administration's directives under President Trump, further complicating the trade discussions. Moreover, it appears that the focus of negotiations is not limited to the new U.S. investment special law but encompasses various regulatory measures impacting trade, potentially leading to a complex bargaining scenario for both nations.

Despite the South Korean government's belief that the new U.S. investment special law might unlock solutions to tariff-related issues, there is a growing recognition that simply passing legislation will not suffice to resolve the underlying problems. High-level discussions within the South Korean government indicate that tariffs must be addressed in conjunction with comprehensive strategies to tackle non-tariff barriers like the Online Platform Act and domestic regulatory responses. Concerns have been raised that if South Korea continues to address these issues in a piecemeal fashion, it could lead to more significant trade tensions and consequences in the future.