Korea navigates diplomatic dance between U.S. and China as tariff deadline approaches

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Korea navigates diplomatic dance between U.S. and China as tariff deadline approaches

Published: 30 Jul. 2025, 18:50

Audio report: written by reporters, read by AI

U.S. President Donald Trump smiles after exiting Marine One on the South Lawn of the White House in Washington on July 29. [EPA/YONHAP]

As the Aug. 1 deadline approaches for Korea-U.S. tariff negotiations, analysts say the Lee Jae Myung administration may be forced to define its diplomatic stance between Washington and Beijing sooner than expected.

With economic factors such as U.S.-bound investment now closely tied to security planning, the core question will be how actively Korea aligns itself with the U.S. President Donald Trump administration’s top foreign policy priority: countering China.

Security, FTA and technology: the three pillars

Korean Minister of Foreign Affairs Cho Hyun met with Japanese Foreign Minister Takeshi Iwaya on Tuesday and Prime Minister Shigeru Ishiba on Wednesday. In a press briefing with Korean correspondents afterward, Cho likened Korea-U.S. relations to a structure supported by “three pillars.”

“The first pillar is the security alliance, the second is economic prosperity through the FTA and the third is technological cooperation,” Cho said.

“We will work to reach a smooth agreement [on tariffs] in the broader context of Korea-U.S. relations and long-term development,” he added.

The remarks signaled that the government intends to frame the tariff talks as part of strengthening the overall alliance — from security foundations to emerging tech partnerships. Cho departed for the United States immediately after wrapping up his meetings in Japan on Wednesday to meet with U.S. Secretary of State Marco Rubio.

Korean Minister of Foreign Affairs Cho Hyun, left, shakes hands with Japanese Prime Minister Shigeru Ishiba during their meeting in Tokyo, Japan, on July 30. [NEWS1]

Earlier, National Security Adviser Wi Sung-lac said he proposed to Rubio during a visit to Washington that the two sides conduct negotiations with an eye toward the alliance’s “end state.”

Following his trip on July 20, Wi also emphasized the need for comprehensive dialogue on all aspects of bilateral relations — including trade, security and the alliance.

With the tariff talks now encompassing nearly all elements of the alliance, observers say this could be the first time Wi’s vision of a “Korea-specific diplomatic trajectory” becomes visible through a concrete outcome.

The Trump administration’s aggressive tariff policy, often described as indiscriminate, ultimately targets China — and Korea may be pressed to choose a side.

National Security Adviser Wi Sung-lac, left, and Yoon Chang-yul, director of the Office for Government Policy Coordination, converse during a Cabinet meeting at the presidential office in Yongsan, central Seoul, on July 29. [JOINT PRESS CORPS]

Tariff pressure ultimately aims at China

That intent was clear in the U.S.-Vietnam agreement reached July 2, which included a 20 percent mutual tariff and a provision to impose a 40 percent duty on goods from “third countries” routed through Vietnam — effectively targeting Chinese circumvention.

Analysts say Trump’s tariff agenda not only seeks to reduce trade deficits but also to drive China out of global supply chains.

Korea’s proposal to offer “goodwill” in the security realm as part of a broader “package deal” could lead to deeper involvement in Washington’s anti-China initiatives.

Experts note that to meet U.S. expectations, Seoul may need to expand arms cooperation, significantly boost its defense budget and actively participate in alliance modernization talks, including the issue of strategic flexibility for U.S. Forces Korea.
Cooperation in shipbuilding — now emerging as Korea’s key bargaining chip in the tariff talks — is also seen as rooted in efforts to counter China. The United States is reportedly looking to establish maritime maintenance, repair and overhaul (MRO) hubs in Asia to prepare for potential conflict in the Taiwan Strait or South China Sea.

A May 2024 Pentagon document titled “Regional Sustainment Framework” stated that “the goal is to change MRO strategies to better equip the warfighter with a network of globally dispersed capabilities that deliver MRO closer to the point of need.”

Minister of Foreign Affairs Cho Hyun speaks during a press conference at the Korean Embassy in Japan in Tokyo, on July 30. [YONHAP]

Shipbuilding as contingency support

“While the U.S. Navy currently uses bases in Japan, Guam and Singapore’s Changi Naval Base for MRO support, these locations fall short in delivering the immediate and sustained support needed in contingency operations,” said Cho Won-deuk, a professor at the Institute of Foreign Affairs and National Security’s Indo-Pacific Research Division.

“If Korean companies acquire shipyards in countries like the Philippines, the U.S. Navy would likely rely on Korea’s MRO capabilities,” Cho added. “That would significantly enhance the Navy’s operational readiness.”

Peter Lee, a research fellow at the Asan Institute for Policy Studies, pointed out in a December report that “the United States would probably be unable to quickly construct many new ships or to repair damaged fighting ships in a great power conflict,” and that the Pentagon is eyeing MRO hubs in Japan, Korea, Australia, Singapore and the Philippines.

China has already responded to these developments. On Monday, Wang Yi, director of the Chinese Communist Party’s Office of the Central Foreign Affairs Commission and Foreign Minister, had his first phone call with Cho.

According to China’s Foreign Ministry, Wang said that “China-Korea relations should neither target any third country nor be subjected to interference by any third country.”

He added that “economic ties between China and Korea are close, with deeply integrated industrial and supply chains,” and urged both countries to “jointly oppose decoupling and safeguard global supply chain stability.”

Wang’s remarks are widely interpreted as a warning against Korea aligning too closely with the U.S. strategy to contain China through a “package deal” approach.

Meanwhile, Hyundai Motor Group Executive Chair Euisun Chung left Korea for Washington on Wednesday to support the final stages of ongoing tariff negotiations between Korea and the United States.

Chung is the third major business figure to join the government's efforts, following Samsung Electronics Executive Chairman Lee Jae-yong and Hanwha Group Vice Chairman Kim Dong-kwan. Korea and the United States are aiming to strike a deal before the negotiation deadline on Aug. 1.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY PARK HYUN-JU [[email protected]]