South Korea and U.S. Trade Negotiators Aim for Tariff Agreement
South Korea’s top trade negotiators met with U.S. Commerce Secretary Howard Lutnick in Washington on July 25, 2023, to discuss tariffs and strengthen manufacturing cooperation. The meeting comes ahead of an impending August 1 deadline set by the Trump administration for a tariff agreement. The talks involved Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo, who both emphasized the urgency of reaching a mutually beneficial trade deal.
During the discussions, Kim proposed increased bilateral cooperation in key manufacturing sectors, including shipbuilding, semiconductors, and battery production. He highlighted the necessity for tariff relief in specific industries, particularly automobiles. “We will do our utmost to ensure that our companies are not treated unfavorably compared to our competitors,” Kim stated. He added that the trade delegation would utilize all available resources to maximize national interests before the upcoming deadline.
The two sides expressed their commitment to achieving a trade agreement that would benefit both nations before the August 1 deadline. Earlier this month, President Donald Trump announced a significant 25% tariff on South Korean goods, which is poised to come into effect shortly.
In addition to his discussions with Lutnick, Kim met with Energy Secretary Chris Wright to discuss collaboration on clean energy and energy security. He extended an invitation to Wright for the upcoming Energy Super Week, scheduled to take place in Busan at the end of August. Meanwhile, Yeo engaged in a video conference with Alabama Governor Kay Ivey to showcase South Korean investments in the United States.
Kim is also set to meet with Secretary of the Interior Doug Burgum during his current trip. Yeo plans to hold discussions with U.S. Trade Representative Jamieson Greer and Texas Governor Greg Abbott.
Originally, high-level “2+2” trade talks were scheduled for July 28, 2023, involving U.S. Treasury Secretary Scott Bessent and Greer alongside their South Korean counterparts, Finance Minister Koo Yun-cheol and Yeo. However, these talks were delayed due to a last-minute scheduling conflict with Bessent, raising concerns regarding South Korea’s ability to secure a tariff agreement before the looming deadline.
The backdrop of these negotiations is significant; earlier this week, Japan and the United States reached their own agreement to reduce tariffs on Japanese goods from 25% to 15%. As South Korea heavily relies on exports, the outcome of these discussions could have profound implications for its economy and international trade relationships.
