South Korea Says Trump Agrees to Ramp Up Tariff Talks With Lee

South Korea said newly elected President Lee Jae-myung spoke for the first time with Donald Trump and agreed to seek “tangible results” in trade negotiations.

Seoul, June 7, 2025 — South Korea's newly elected President Lee Jae-myung held his first phone conversation with U.S. President Donald Trump on June 6, local time. The two leaders discussed Washington's tariff policy and the bilateral alliance, according to the South Korean government [1].

In their conversation, Lee and Trump agreed to work towards a mutually satisfactory agreement on tariffs. The two sides affirmed the bilateral alliance and agreed to maintain cooperation on diplomatic and security fronts. This comes at a critical time for South Korea, as the country faces potential economic and security challenges due to U.S. tariffs and the volatile relationship with North Korea [2].

The tariffs, imposed by Trump in April, have caused concern among South Korean investors and financial professionals. The tariffs, which include a 25% levy on all Korean imports, have the potential to trigger an economic crisis, according to seasoned advisors [2]. South Korea's economy was already slowing down before the tariffs, and the martial law chaos further constricted it. In the first quarter of this year, the economy contracted, making it a top priority for the new administration to address [2].

The security aspect of the conversation is equally critical. The U.S. currently guarantees South Korea's security, with 28,500 troops stationed in the country. However, Trump has made clear that he does not plan to differentiate between trade and security when negotiating with South Korea, signaling that Seoul is not pulling its weight in either area [2].

The new president must navigate these complex issues while also addressing the volatile political climate within South Korea. Lee Jae-myung campaigned on the promise of strengthening South Korea's democracy and uniting the country, but his honeymoon will barely last the day. He is entering office immediately to fill the void left by the impeachment of the former president, Yoon Suk Yeol [2].

Seoul is hoping to use its shipbuilding expertise as a negotiating card with the U.S. South Korea builds more vessels than any other country bar China and is hoping to use this expertise to build, repair, and maintain warships for the U.S. [2].

In his campaign, Lee Jae-myung declared he did not want to rush into any agreements with Trump. However, the new president must move quickly to address the pressing issues at hand. His first homework assignment should be to come up with a list of 10 reasons why South Korea is an indispensable partner and why American dollars are being well spent, reasons that can convince a skeptical and transactional Trump [2].

References:
[1] https://asia.nikkei.com/Spotlight/South-Korea-election/South-Korea-s-Lee-and-Trump-discuss-tariffs-golf-in-1st-phone-call
[2] https://www.bbc.com/news/articles/cpvkxxerln1o