Accept the deal or face tariffs, Lutnick says as trade talks remains in deadlock

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Accept the deal or face tariffs, Lutnick says as trade talks remains in deadlock

Published: 12 Sep. 2025, 11:53 Updated: 12 Sep. 2025, 14:28

Audio report: written by reporters, read by AI

U.S. Secretary of Commerce Howard Lutnick speaks during an interview with CNBC on the floor at the New York Stock Exchange in New York City on Sept. 11. [REUTERS/YONHAP]

U.S. Commerce Secretary Howard Lutnick on Thursday urged Korea to accept a pending trade deal with Washington or face tariffs, as talks remain deadlocked over details of the bilateral agreement.

"The Koreans didn't sign when the president was in [...] the White House," Lutnick told CNBC, referring to President Lee Jae Myung's meeting with U.S. President Donald Trump in Washington in August.

"Notice how we didn't talk about trade because he didn't sign the piece of paper," he said.

Lutnick said Seoul appeared to be watching Tokyo’s approach. “So, there's no flexibility. The Japanese signed the contract.

"The Koreans either accept that deal or pay the tariffs. Black and white. Pay the tariffs or accept the deal," he added.

Washington and Seoul reached a broad agreement on July 30 but have been at odds over details, including Korea’s investments in the United States. Watchers analyzed Lutnick’s comments as pressure on Seoul to agree to U.S. terms.

Detainees are made to stand against a bus before being handcuffed, during a raid by federal agents where about 300 Koreans were among 475 people arrested at Hyundai Motor Group and LG Energy Solution’s joint battery plant in Ellabell, Georgia on Sept. 4. [REUTERS/YONHAP]

When asked about the recent arrests of Korean workers at LG Energy Solution and Hyundai Motor Group's battery plant construction site, Lutnick did not provide a direct answer.

Instead, he said the United States needs more work force training.

Lutnick said the United States needs more vocational schools and community colleges and urged state universities to launch training programs.

“If Harvard settles with Donald Trump, you know what he’s going to do with the $500 million? He’s going to have Harvard build vocational schools. The Harvard vocational school, because that’s what America needs,” Lutnick said.

Lutnick said Trump will "go out and address" foreign skilled-worker visa issues raised by the recent raid and arrest of Korean workers in Georgia.

"He knows that to build these great factories, we need leadership of people who built them before. He wants to do it fast," he said.

Lutnick added that the administration could seek new visa agreements with foreign governments.

"He’s going to make a deal with different countries that when they want to build big here, he’ll find a way to get their workers proper work visas — meaning short-term work visas, train Americans, and then head home," he said.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY JUNG SI-NAE [[email protected]]