PPP floor leader says U.S. tariff deal 'reasonable,' warns of investment burden
Published: 31 Jul. 2025, 14:50
![Rep. Song Eon-seog, interim chief and floor leader of the People Power Party, delivers opening remarks during a party meeting at the National Assembly on July 31. [JOONGANG ILBO]](https://koreajoongangdaily.joins.com/data/photo/2025/07/31/1c5976db-3b2c-4b20-9664-804da1908eca.jpg)
Rep. Song Eon-seog, interim chief and floor leader of the People Power Party, delivers opening remarks during a party meeting at the National Assembly on July 31. [JOONGANG ILBO]
Interim People Power Party (PPP) chief and floor leader Song Eon-seog praised the new Korea-U.S. trade agreement as “reasonable” but warned that it could undercut Korean automakers and saddle the country with an outsized investment burden.
Speaking Thursday at a party leadership meeting at the National Assembly, Song said the 15 percent tariff deal was “appropriate,” noting that it matches the rate applied to Japan and the European Union. But he flagged concerns over how the uniform rate affects Korea’s competitiveness.
“I believe the government delegation and private-sector diplomats, such as Samsung Chairman Lee Jae-yong and Hyundai Motor Executive Chair Euisun Chung, made significant efforts in this negotiation,” he said. “But we have to point out a few things. Korea previously had a zero percent tariff, while Japan was at 2.5 percent. Applying the same 15 percent rate to both means Japanese cars gain a relative advantage.”
He also questioned the scope and urgency of the agreement with the Donald Trump administration.
“It feels like we made a lot of concessions under deadline pressure,” Song said. “We now face the need for a $350 billion investment in the United States, plus $100 billion in energy purchases — a total of $450 billion. That’s more than our foreign exchange reserves. It seems excessive.”
Song noted that even the $350 billion figure is significant relative to Korea’s economy.
“Compared to the GDP of Japan or the European Union, the size of our investment is disproportionately large. This is a burden that falls on our national economy,” he said.
He also urged the government to clarify the details of the agricultural provisions in the deal.
![U.S. President Donald Trump speaks at an event to promote his proposal to improve access to medical records in the U.S. in the East Room of the White House on July 30. [AP/YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/07/31/dada5cdb-e901-41fd-9fea-023f7a339c26.jpg)
U.S. President Donald Trump speaks at an event to promote his proposal to improve access to medical records in the U.S. in the East Room of the White House on July 30. [AP/YONHAP]
“The government said there would be no further opening of the rice and beef markets, but President Trump’s message included ‘agriculture,’” Song said. “The government should clarify whether imports of other grains or fruit will be significantly expanded, or if it was just political rhetoric.”
Song questioned the timing of the agreement’s announcement.
“The deal was announced this morning, but President Lee Jae Myung is reportedly visiting the United States in two weeks for a summit with President Trump, where the final agreement will be made public,” he said. “The public may find this confusing.
“We need to know whether the tariff concessions were made to secure the summit or if undisclosed diplomatic, security or defense issues are involved. The government must clearly explain this to the public.”
Seoul and Washington agreed to lower U.S. tariffs on Korean goods from 25 percent to 15 percent. In return, Korea committed to investing $350 billion in the United States.
Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY CHO MUN-GYU [[email protected]]
with the Korea JoongAng Daily
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