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Home World News Asia

South Korean presidential frontrunner says US risks isolation with tariffs

May 8, 2025
in Asia
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SEOUL – South Korea’s presidential frontrunner said Seoul should not rush a trade deal with the United States and called for a coordinated response with other countries to U.S. tariffs, arguing that Washington risked isolation with its policy.

Lee Jae-myung, the presidential candidate of the Democratic Party, said on Thursday he expected Washington to face an uphill battle to pursue its “dangerous” policy, which he said threatened to increase inflation and undermine U.S. national credibility.

“There is a high chance the United States could end up isolating itself,” he said during an interview with several economy YouTube channels.

Lee is the liberal South Korean politician favoured to become the country’s next leader on the June 3 snap election called after Yoon Suk Yeol was removed from office over his brief attempt to impose martial law in December.

Lee said South Korea should not be the first country to reach a deal with the United States. “It is important not to rush in the first place,” he said.

Lee also said he has asked businesses to refrain from holding separate talks with the U.S. to get tariff exemptions, saying that the government and businesses should join forces to use the latter’s U.S. investments as negotiating cards.

He also said South Korea needs to join hands with other “neighboring countries” such as Japan to respond to U.S. tariff policy.

The United States has prioritised talks with key trading partners and allies like Japan, Korea and India, as Washington scrambles to seal a flurry of trade deals before the 90-day pause in U.S. tariffs expires in early July.

U.S. Treasury Secretary Scott Bessent said U.S. talks with South Korea were “moving faster” than he thought after their first formal talks in late April. But South Korea has taken a cautious stance, saying it does not see an imminent deal.

The working-level talks with the U.S. were further cast into doubt on May 1 when the caretaker government was rocked by the resignation of the finance minister, leaving the education minister as acting president. REUTERS

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