The government has launched a last-ditch effort to prevent the U.S. administration from unexpectedly reinstating tariffs.
The top priority is to block the official publication of the tariff increase in the Federal Register. However, the government is also seeking a grace period to delay implementation if the process moves forward.
With Congress set to handle the “Special Act on U.S. Investment” by March 9, as requested by the American side, the government aims to use this delay strategy to buy legislative time and minimize the impact of tariff regulations on industry.
According to trade authorities on Thursday, the U.S. administration has already initiated the process to publish in the Federal Register a 25% tariff increase on South Korean automobiles and reciprocal tariffs on South Korea.
This sentiment was echoed by Yeo Han Koo, South Korea’s Trade Minister, who recently returned from a trip to the U.S.
On Tuesday, just before his departure from Washington, D.C.’s Union Station, Yeo told South Korean reporters that he understood discussions were underway among relevant U.S. departments to formalize President Trump’s announcement of a tariff increase.
Despite efforts to mobilize trade and diplomatic channels to persuade the U.S. immediately after President Trump’s January 26 remarks about reinstating tariffs, the 25% tariff increase appears to be taking shape. Having failed to halt the tariff reinstatement process during this U.S. visit, the government’s strategy is shifting to a more pragmatic approach of buying time.
The plan is to continue negotiations with the U.S. to delay implementation as long as possible, while simultaneously expediting domestic legislative procedures to establish a systematic response framework.
Upon his return, Minister Yeo emphasized that even if the tariff increase appears in the U.S. Federal Register, the crucial factor will be whether the increase is immediate or comes with a 1-2 month grace period.
The National Assembly is also picking up pace belatedly.
The Democratic Party and the People Power Party have agreed to form a special committee to process the “Special Act on Strategic Investment Management between South Korea and the U.S.”
The committee will comprise 8 members from the Democratic Party, 7 from the People Power Party, and 1 from a minor party, with the People Power Party chairing. With a one-month activity period from the resolution, the special act is likely to be processed before March 9 if the current schedule holds.
The parties have adjusted the plenary session date to the 12th and largely resolved the contentious ratification issue. The People Power Party has withdrawn its ratification demands, agreeing instead to strengthen equivalent provisions during the bill’s discussion.
Alongside the special act, the National Assembly aims to establish a legal foundation to mitigate industry shock before any U.S. tariff increase takes effect.
As legislative efforts accelerate, the government plans to leverage this momentum to persuade the U.S. administration to secure a grace period for tariff application, striving to prevent any increase at least until March 9.
A government official said that, with the National Assembly’s legislative timeline now set, there was more room for negotiations with the United States and added that discussions were ongoing through various channels.