Pecohub U.S. President Donald Trump said on the 25th (local time), “We have not been treated properly by other countries, but the situation has now changed,” adding, “Thanks to the tariff trade agreement, we will receive $550 billion from Japan and $350 billion from South Korea.” He then stated, “This is ‘up front.’” This is interpreted as pressure for South Korea to pay most of the $350 billion in cash if it wants tariff reductions.
Trump’s remarks came just one day after South Korea’s presidential office revealed that the “unlimited currency swap” and “commercial rationality” were the Maginot Line South Korea could accept regarding the $350 billion investment fund in the U.S. Amid delays in car tariff reductions due to differences between the two countries, the leaders of both nations are now clashing by issuing mutually tough messages.
Concerns are growing that the tug-of-war between the two sides could extend until the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju next month.
On the same day, the Wall Street Journal (WSJ) reported that U.S. Secretary of Commerce Howard Lutnick is pressuring the South Korean government to slightly increase its investment amount in the U.S. beyond $350 billion.
The South Korean government has been emphasizing to the U.S. that its economic scale and foreign exchange reserves are significantly smaller than Japan’s. However, the U.S. reportedly asked South Korea to approach Japan’s $550 billion investment level.
The Ministry of Trade, Industry and Energy, the main agency handling tariff negotiations, stated, “We have not received any demand for an amount exceeding $350 billion.” However, on the 26th, the won-dollar exchange rate closed at 1,412.4 won, up 11.8 won from the previous day’s closing price in weekly trading, marking the highest level in four months.
