Washington: South Korea's chief trade negotiator has urged U.S. lawmakers to ensure a "stable" and "predictable" business environment for Korean companies in light of Washington's efforts to pass a tax bill that could reduce tax credits for electric vehicles, South Korea's industry ministry announced on Friday.
According to Yonhap News Agency, Trade Minister Yeo Han-koo made this appeal during meetings with U.S. Republican Senators Todd Young from Indiana and Bill Hagerty from Tennessee, as well as Korean American U.S. Representative Young Kim, in Washington on Thursday. Yeo emphasized the necessity of maintaining a conducive environment for Korean businesses as the proposed tax legislation, initiated by the Donald Trump administration, is poised to have significant repercussions on global markets and economies.
The proposed legislation, known as the "One Big Beautiful Bill Act," aims to curtail tax credits for electric vehicles and other incentives previously afforded under the Inflation Reduction Act. This change is anticipated to affect Korean exporters significantly. Yeo highlighted the importance of cultivating a mutually beneficial relationship between South Korea and the United States, especially amidst the uncertainty surrounding the Trump administration's tariff and industrial policies.
In addition to his meetings with U.S. lawmakers, Yeo also engaged in a virtual discussion with Louisiana Governor Jeff Landry to deliberate on support measures for Korean companies operating in the state and other trade-related issues. Louisiana plays a crucial role as the third-largest U.S. state in natural gas production, which remains a significant topic in ongoing trade negotiations between Seoul and Washington. The state is also set to host Hyundai Steel Co.'s first overseas steel mill, slated for completion by 2029.
The Korean trade minister's visit to the U.S. capital, which began on Sunday, marks his first official trip to the United States since assuming office earlier this month. During his visit, Yeo held trade talks with U.S. counterparts concerning tariffs, non-tariff measures, and other pressing issues. On Monday, he met with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick to present Seoul's stance on the Trump administration's tariff policies.
In a prior agreement made in May, Seoul and Washington committed to developing a comprehensive package addressing tariffs and other trade matters by July 8, the expiration date of the 90-day suspension of U.S. reciprocal tariffs, which include 25 percent duties on South Korean imports. The South Korean government has been actively negotiating with the Trump administration to secure full exemptions or reductions for these reciprocal tariffs, as well as sectoral duties that include a 50 percent tariff on steel imports and a 25 percent tariff on car imports.
Yeo has pledged to strive for a "pragmatic" and "mutually beneficial" agreement between the two nations. This commitment was reiterated on Wednesday when the Korean trade envoy met with U.S. Representatives Jason Smith, Adrian Smith, and Carol Miller to discuss the implications of the U.S. tax bill.