As the Trump administration considers raising tariffs on Korean-made products, citing delays in Korea’s investment in the United States, the Korean and U.S. trade authorities have consulted on non-tariff barrier issues, including in the digital sector. President Trump is also urging Japan and Taiwan, which along with Korea are major investors in the United States, to speed up their investment. Industry observers say the situation is better than when only Korea was being singled out, but to minimize tariff risks, Korea will need to keep pace relatively with others.

The Ministry of Trade, Industry and Energy said Chief Trade Negotiator Yeo Han-koo met in Seoul on the 11th with a U.S. delegation led by Rick Switzer, a Deputy at the Office of the U.S. Trade Representative (USTR), and discussed in detail the implementation status and future plans for the non-tariff items agreed in the leaders’ joint fact sheet between Korea and the United States.

Previously, in November last year, the two countries concluded tariff talks and decided to abolish the cap on the measure that allowed, without additional modifications, imports of up to 50,000 U.S.-made vehicles per manufacturer per year that comply with the Federal Motor Vehicle Safety Standards (FMVSS). They also agreed to ensure that U.S. companies are not discriminated against and do not face unnecessary barriers in laws and policies related to the digital sector, including network usage fees and online platform regulation.

On this day, Yeo conveyed the Korean government’s commitment to carrying out the non-tariff agreement and recent domestic developments related to the digital sector. The two sides also agreed to work out detailed plans to convene soon the ‘KoreaU.S. Free Trade Agreement (FTA) Joint Committee’, the official channel for consultations on non-tariff matters. Yeo said, “To stably manage KoreaU.S. trade issues, we will maintain a standing communication framework with the USTR going forward.”

Meanwhile, President Trump has reportedly voiced dissatisfaction with the pace of investment in the United States by Japan. According to foreign media, Japan is coordinating with the United States on its first set of U.S.-bound investment projects, including a gas-fired power facility for data centers, a synthetic diamond manufacturing plant, and a crude oil loading port. Unlike Korea, Japan does not need a special law for investment in the United States, but it is seen as not accelerating because the Supreme Court is reviewing whether reciprocal tariffs are unconstitutional.

The U.S. Department of Commerce is also reportedly reviewing, as a follow-up to tariff talks with Taiwan, a plan to exempt so-called “Big Tech” companies such as Amazon, Google, and Microsoft from semiconductor tariffs. However, it hinted that if TSMC does not fulfill its U.S. investment commitments, any exemption could be withdrawn.

Industry observers assess that the Trump administration’s impatience has become pronounced. With approval ratings falling due to issues such as Jeffrey Epstein, it sees a need to further boost U.S.-bound investment to reverse the trend. A trade industry official said, “The European Union (EU) has the Greenland issue, and unlike the case where U.S.-bound investment is left to corporate discretion, Korea, Japan, and Taiwan are countries where the government can exert influence,” adding, “Until recently, President Trump’s attention had been focused on Korea, but with Japan now being mentioned as well, it has become a chance for Korea to catch its breath. However, if Korea falls relatively further behind Japan and Taiwan, the tariff risk could grow.”