Washington: U.S. Treasury Secretary Scott Bessent expressed optimism on Tuesday about the progress of trade negotiations between the United States and South Korea, suggesting that the structure of a potential trade agreement is "coming together." The discussions aim to address South Korea's pursuit of exemptions from the Trump administration's "reciprocal" and sectoral tariffs.
According to Yonhap News Agency, during a press conference, Bessent noted that South Korea, alongside other nations facing internal political challenges, is eager to engage in trade discussions. These countries are motivated to demonstrate successful negotiations with the United States to their domestic audiences.
Bessent highlighted the ongoing progress in trade talks not only with South Korea but also with countries like India and Japan. He indicated that a framework for a deal with South Korea appears to be forming. The recent high-level trade consultations between South Korea and the United States resulted in an agreement to pursue a "July package" on U.S. tariffs and bilateral economic and industrial cooperation, with the aim of reaching a resolution before the expiration of President Donald Trump's 90-day pause on reciprocal tariffs on July 8.
Observers anticipate that the finalization of the trade deal may occur following South Korea's presidential election on June 3. This election was called after the impeachment of President Yoon Suk Yeol, who was removed from office due to his brief imposition of martial law in December.
Bessent addressed concerns about how domestic issues in South Korea and other countries might complicate trade negotiations. He asserted that these nations are keen to establish a deal framework ahead of their elections, allowing them to campaign on the success of the negotiations.
In related news, U.S. Commerce Secretary Howard Lutnick revealed in a CNBC interview that the U.S. has successfully concluded a trade deal with an unnamed country. He stated that the agreement awaits approval from the foreign nation's prime minister and parliament, which is expected soon.