As its trade negotiators rushed to Washington to seek a reprieve from President Donald J. Trump’s blanket tariffs, South Korea on Wednesday announced new measures to soften the blow of levies on the country’s carmakers.
The two efforts underlined the delicate balance that South Korea needs to strike after the country, one of the most loyal U.S. allies in Asia, was hit by some of the heaviest tariff rates announced by President Trump last week.
Mr. Trump on Tuesday cheered the imminent arrival of the negotiating team from South Korea, which is led by Trade Minister Cheong In-kyo.
“Their top TEAM is on a plane heading to the U.S., and things are looking good,” Mr. Trump said on his Truth Social platform. “We are likewise dealing with many other countries, all of whom want to make a deal with the United States.”
South Korea’s interim leader, Prime Minister Han Duck-soo, on Tuesday suggested that his country was ready to make compromises aimed at pleasing Mr. Trump.
In an interview with CNN, Mr. Han said South Korea would not band together with China to push back against Mr. Trump’s tariffs. South Korea “clearly would like to negotiate” with Washington, he said. “I don’t think that kind of fighting back will improve the situation dramatically.”
In a telephone call with Mr. Trump later Tuesday, Mr. Han also said his country was willing to cooperate with the United States in shipbuilding and liquefied natural gas, as well as reducing South Korea’s $55.7 billion trade surplus, the South Korean leader’s office said.
South Korea has built its war-torn country into a global economic powerhouse based largely on exports. Mr. Trump’s sweeping 25 percent tariffs hit its biggest export engines, especially its car industry.
The measures to support carmakers that South Korea announced Wednesday included raising financing support to 15 trillion won, or about $10 billion, in 2025 from the 13 trillion won previously planned. Taxes on automobile purchases will also be lowered to 3.5 percent from 5 percent currently until June, and electric-vehicle subsidies will be increased.
In addition to trade, South Korea also relies more than ever for its security on the United States and their seven-decade-old military alliance. That has become all the more pressing as North Korea expands its nuclear threat and forges a military alliance of its own with Russia.
Mr. Trump has already turned this week’s negotiations into more than a trade talk, indicating that he wanted South Korea to drastically increase what it pays for keeping 28,500 American troops on the country’s soil.
The statement from Mr. Han’s office said the United States reconfirmed its commitment to the military alliance with South Korea. But after the call, Mr. Trump also said he and Mr. Han talked about “payment for the big-time military protection we provide to South Korea.”