Trump's Korea Tariff Threat Unlinked to Coupang, Seoul Says

From 15% to 25%. Trump's latest tariff threat against South Korean goods has Seoul scrambling to clarify what's really driving the pressure—and what isn't.

Foreign Minister Cho Hyun told lawmakers Wednesday that Trump's warning to hike tariffs has "no direct connection" to Seoul's investigation of Coupang or the country's proposed platform regulation bill. The clarification came after speculation that the U.S. president's Truth Social post was retaliation for what American lawmakers have called Seoul's "discriminatory" treatment of the U.S.-listed e-commerce giant.

The Real Trigger Behind Trump's Threat

Trump's Monday post blamed Seoul for delays in legislative procedures needed to implement their trade deal. The tariff hike would hit Korean autos, pharmaceuticals, and other goods—industries that form the backbone of Korea's export economy.

But Trump's Tuesday follow-up struck a different tone: "We'll work something out with South Korea." The whiplash messaging reflects the unpredictable nature of Trump's negotiation style, leaving Seoul to parse which statements represent actual policy versus opening gambits.

The timing isn't coincidental. Korea's National Assembly has been slow-walking legislation required under their trade agreement, creating an opening for Trump to apply pressure through his preferred tool: tariff threats.

The Coupang Controversy Explained

33 million. That's how many South Korean users were affected by Coupang's data breach—a number that represents nearly two-thirds of the country's population. The incident has become a flashpoint for broader tensions over how Seoul regulates American tech companies.

U.S. lawmakers have accused Seoul of conducting a "political witch hunt" against Coupang, arguing that Korean regulators are applying different standards to the American company than they would to domestic firms. The criticism intensified as Seoul simultaneously pushed forward with legislation targeting major platform operators including Naver, Kakao, Google, and Apple.

The proposed bill aims to prevent these platforms from abusing their market dominance or pressuring smaller merchants. But American officials see it as creating unnecessary barriers in digital services—exactly what Seoul promised not to do in their summit agreement.

Seoul's Balancing Act

"Seeing how the U.S. government has changed has led me to believe that we need to respond accordingly," Cho said, acknowledging the challenge of dealing with Trump's unpredictable approach.

The comment reveals Seoul's dilemma: How do you maintain sovereignty over your digital economy while avoiding a trade war with your most important ally? The situation is complicated by reports that Vice President Vance has asked Korean officials to prevent bilateral misunderstandings over the Coupang issue.

Cho's insistence that the tariff threat is unrelated to Coupang may be technically accurate, but it misses the broader pattern. Whether it's trade implementation, platform regulation, or corporate investigations, Washington's message to Seoul remains consistent: Don't discriminate against American companies.

The New Rules of Engagement

The Trump administration's approach represents a departure from traditional diplomatic channels. Instead of quiet negotiations, public pressure through social media threats has become the opening move. This creates a challenging environment for allies like South Korea, which must balance domestic political pressures with American demands.

For Korean companies, the uncertainty is particularly acute. Samsung, Hyundai, and other exporters face potential tariff increases while domestic platforms navigate new regulations designed to level the playing field with American competitors.