In a recent briefing, South Korea's Foreign Ministry highlighted that, despite ongoing updates on legislation related to a pledged $350 billion investment in the US, Washington has not retracted its threat to increase tariffs back to 25%. This situation indicates a complex relationship where, although no official announcement of the tariff hike has been made, there is an acknowledgment from the US side that Seoul is making progress in negotiations. An official from the Foreign Ministry noted that the Secretary of State conveyed an overall negative sentiment regarding the current mood in the US during the discussions with South Korean Foreign Minister Cho Hyun.

The discussions center on the US’s concerns about the delivery and effectiveness of Korea's investments in the US. The acknowledgement of differences in investment approaches between Korea and Japan signifies a unique stance the US holds towards each country, possibly reflecting strategic economic interests that inform its policy decisions. The official also mentioned that significant movement on investment fronts is expected before any changes in tariff policy are made, indicating that both parties are aware of the intertwined nature of trade and foreign investment.

While the timeline for a potential tariff increase remains unclear, the continued dialogue between South Korea and the US underscores the importance of these economic ties and the need for both nations to address concerns collaboratively. The ongoing conversations could lead to either a resolution that fosters increased investment or a further escalation in trade tensions, highlighting the delicate balance of international trade relations in the current geopolitical climate.