People Power Party on Tariff Deal: "Concessions Made Due to Tight Deadlines... Weaken Automotive Competitiveness" (Summary)

"15% Tariff Rate is Appropriate... Government Must Clarify Potential Expansion of Agricultural Imports"

Song Eon-seok, Interim Committee Chair and Floor Leader, attends the emergency committee meeting held at the National Assembly in Seoul on July 31. 2025.7.31 pdj6635@yna.co.kr

The People Power Party downplayed the tariff deal reached between South Korea and the U.S. on the 31st, responding that it is "effectively a loss" and "disappointing in terms of substance."

At the emergency committee meeting held at the National Assembly that day, Interim Committee Chair and Floor Leader Song Eon-seok stated, "While I believe a 15% tariff rate is an appropriate level because it puts us on par with Japan and the European Union (EU), our automobiles previously enjoyed a 0% tariff, whereas Japan was subject to a 2.5% rate. I am concerned that applying the same 15% tariff rate will increase the competitiveness of Japanese cars. It is effectively a loss for our automotive industry."

He remarked, "We are facing a situation that requires $450 billion in investments and purchases in the U.S.—including $350 billion in direct investment and $100 billion in energy purchases—which feels like an excessive amount, exceeding our foreign exchange reserves. It feels as if we made many concessions because we were chased by negotiation deadlines."

He continued, "The government announced that there would be no additional market opening for agricultural and livestock products, including rice and beef, but President Trump's message mentions 'agriculture.' We expect the government to clearly clarify whether this means a significant expansion of imports for other grains or fruits beyond rice and beef, or if it is merely political rhetoric from President Trump."

Chief Spokesperson Park Sung-hoon met with reporters immediately after the committee meeting and said, "For automobiles, Japan and the EU have been subject to a 1.94% tariff on certain items, while we had 0%. Applying the same tariff is a disadvantage to us. We should have negotiated it down to at least 13%."

He also criticized the $350 billion U.S. investment fund, stating, "Japan's investment scale is about 14% of its GDP and the EU's is about 7%, but for South Korea, it is around 20%. The numerical scale itself is excessive for our country."

Rep. Na Kyung-won held a press conference at the National Assembly and assessed, "While the number 15% was reached for the tariff rate, the content of the deal is disappointing."

Rep. Na predicted, "A 15% tariff has been imposed on automobile exports that were previously 0% under the KORUS FTA, whereas for Japan, their 2.5% tariff was raised to 15%. This will bring about a significant gap in competitiveness within the automotive industry."

Regarding the $350 billion U.S. investment fund, she argued, "Who will fulfill the promise of investment in the U.S. and how? Will this not eventually lead to arm-twisting corporations? With the combination of tariff hikes and pressure for overseas investment, the 'hollowing out' of South Korea's industry is inevitable." Yonhap News