Coupang dispute raises tariff pressure in U.S.-South Korea ties

A dispute over South Korean treatment of U.S.based retailer Coupang is adding tension to the relationship between Washington and Seoul. U.S. lawmakers and White House officials say the case could lead to further tariff pressure if the two sides do not reach a resolution. The controversy began after a House Judiciary Committee report accused South Korea of singling out Coupang following a 2025 data breach. South Korea rejected the report, saying its actions were a legitimate response to consumer harm and that the U.S. allegations were based largely on the company’s claims. The issue comes at a sensitive moment for the alliance, with trade negotiations still under strain and U.S. officials already critical of South Korea’s pace on prior commitments. Some members of Congress have called for investigations and possible retaliation, while South Korean officials say the alliance remains strong and deny any coercive conduct.