In a speech on infrastructure in Ohio Thursday, Donald Trump warned that he might “hold up” the recently renegotiated Korea-US free trade agreement (KORUS) in an effort to gain more leverage in potential talks with North Korea.
Under the terms of the trade pact, South Korea will be permanently exempt from the Section 232 steel tariffs in exchange for decreasing their total steel exports to the US by 30 percent of the last three years’ average.
South and North Korea announced plans this week to hold bilateral meetings next month in advance of a possible meeting between Trump and North Korean ruler Kim Jong Un. Trump did not explain why the trade deal with South Korea and talks with North Korea could not proceed simultaneously. He said while the “rhetoric has calmed down” regarding North Korea, he might delay the implementation of KORUS because “it’s a very strong card and I want to make sure everyone is treated fairly.”