U.S. Treasury Secretary Scott Besant speaks at the World Economic Forum in Davos, Switzerland, on the 20th (local time). Reuters Yonhap News

On the 28th (local time), U.S. Treasury Secretary Scott Besant stated, “Because the National Assembly of Korea has not passed the trade agreement, there is no trade agreement with Korea until they approve it.”

In a CNBC interview that day, Besant gave this answer to the question, ‘Did President Donald Trump raise tariffs on Korea because Korea did not approve the trade agreement?’ The term ‘approval’ used by Besant and the host is interpreted as referring to the National Assembly’s handling of the ‘Special Act for the Management of Korea-U.S. Strategic Investment’ (Special Act on Investment in the United States).

Besant emphasized, “(The signal from the Trump administration is) to sign the trade agreement.” When asked, ‘Will Korea be subject to a 25% tariff until it is approved (in the Korean legislature)?’, he did not give a clear answer, saying, “I think that helps move the situation forward.” This can be interpreted as expressing the expectation that President Trump’s declaration of a tariff increase will accelerate the processing of the Special Act on Investment in the United States in Korea.

On the 26th, President Trump stated on the social network Truth Social, “Because the Korean legislature has not legislated our historic trade agreement, I am raising tariffs on automobiles, lumber, pharmaceuticals, and all other reciprocal tariffs from 15% to 25%.” However, the next day he said that a solution would be sought together with Korea, suggesting that the tariff increase could be put on hold depending on the outcome of consultations between the two countries.

Since President Trump’s declaration, no executive order implementing the tariff increase or publication in the Federal Register has yet occurred. Minister of Trade, Industry and Energy Kim Jeong-Gwan plans to travel from Canada to the United States tonight and, in Washington, meet with U.S. Secretary of Commerce Howard Rutnick and others to determine the intent of the U.S. side and explain the situation in Korea.

Regarding the U.S. economy this year, Besant said high growth would continue as it did last year, adding, “(High growth without inflation) is possible.” On the recent weakness of the dollar, he said, “The United States always has a strong-dollar policy,” and predicted, “As we are reducing the trade deficit, over time that will naturally lead to a stronger dollar.”