Korea’s New President Faces Tough Trade Talks with Trump: Is He Ready?

A US expert emphasized Wednesday the need for President Lee Jae Myung to adequately prepare for potential impromptu demands from US President Donald Trump during phone discussions on US tariffs and other trade issues.

Wendy Cutler, vice president of the Asia Society Policy Institute and former negotiator of the South Korea-US free trade agreement, warned that without sufficient preparation, Seoul could end up with a deal detrimental to its interests.

Her comments come as Seoul strives to reach an agreement with Washington to avoid the Trump administration’s proposed 25 percent reciprocal tariffs and other duties on steel, aluminum, and automobiles. These tariffs would take effect on August 1 if the two sides fail to strike a deal.

In a podcast hosted by the Washington-based Center for Strategic and International Studies, Cutler stressed, “If leaders are discussing closing a deal, I can’t overemphasize the importance of proper preparation. Our president may make new demands during the call.”

“If your leader isn’t fully briefed or willing to push back, you might end up with a deal that’s even more counterproductive to your national interests. My advice – not just for Korea, but for any foreign government – is to prioritize thorough preparation for any leader-to-leader call,” she added.

Cutler further cautioned, “Another risk is… Let’s say you push back, and then Trump could end the call saying, ‘Well, you know what? That 20 percent tariff wasn’t high enough. It’s now 40 percent.'”

Despite these risks, she underscored the importance of top-level engagement.

“From a relationship standpoint, nothing is more crucial for Korea right now than for its new president to meet with our president,” Cutler stated.

Noting the potential coordination challenges faced by the new Korean government due to its diverse trade-related ministries, Cutler remarked, “Time is not on Korea’s side right now.”

She pointed out that while Korea’s Ministry of Trade, Industry and Energy is coordinating trade negotiations with the US internally, it faces more hurdles than when the foreign ministry held this role decades ago.

“Ministries like agriculture and others… They won’t simply follow MOTIE’s lead,” she explained.

“I believe Blue House oversight is crucial here to keep things on track,” Cutler added, referring to South Korea’s presidential office.

The expert warned that an influx of newly appointed Korean ministers to Washington could hinder trade talks.

“Too many channels and too many cooks in the kitchen make it harder to coordinate everything,” she noted.

Cutler didn’t rule out the possibility of Seoul and Washington reaching a broad framework deal before the August 1 deadline.

“It’s a tall order given the time constraints, but I don’t dismiss it,” she said, highlighting the range of issues involved in the Seoul-Washington trade talks. (Yonhap)