Pressure Mounts on Seoul Amid U.S.-Japan Trade Deal Tensions

South Korea's Industry Minister Kim Jung-kwan announced on Wednesday that the nation is closely examining the new trade agreement between the United States and Japan. Speaking to reporters before heading to Washington for dialogues with American officials, Kim expressed the importance of this development for South Korea.

As a major competitor to Japan in sectors like automobiles and steel, South Korea faces immense pressure to negotiate its own trade agreement by the August 1 deadline, or risk being subjected to 25% reciprocal tariffs from the U.S. Kim is set to discuss these concerns with U.S. Secretary of Commerce Howard Lutnick and Secretary of Energy Chris Wright, among others.

In a related social media post, U.S. President Donald Trump indicated that the newly established trade deal with Japan entails $550 billion worth of Japanese investments in the U.S., along with enhanced Japanese markets for American car and agricultural exports. Additionally, the U.S. previously urged South Korea to establish a major investment fund to aid U.S. manufacturing, according to a report by Chosun Ilbo.

(With inputs from agencies.)