Washington: U.S. Treasury Secretary Scott Bessent called for allies to strengthen their commitments to "shared defense," emphasizing America's provision of security guarantees and open markets. This call comes as Bessent is set to attend high-profile trade talks with South Korea later this week.
According to Yonhap News Agency, Bessent made these remarks during a forum hosted by the Institute of International Finance. The forum took place a day before he and U.S. Trade Representative Jamieson Greer are scheduled to join South Korea's Finance Minister Choi Sang-mok and Industry Minister Ahn Duk-geun for "two-plus-two" consultations concerning tariffs and other issues.
Bessent highlighted the importance of aligning global economic relationships with security partnerships, stating that security partners are more likely to have compatible economies conducive to mutually beneficial trade. He stressed that as the United States offers security guarantees and open markets, it is crucial for allies to reciprocate with stronger commitments to shared defense.
His remarks come amid calls for Europe to contribute more significantly to security efforts. Bessent's speech was closely observed by South Korea and other allies due to ongoing speculation that U.S. President Donald Trump might propose a "package" deal incorporating defense cost-sharing in addition to trade matters.
Trump has described his negotiation strategy as "one-stop shopping," hinting at a comprehensive deal that could extend beyond trade issues. During the upcoming trade discussions between Seoul and Washington, both sides are expected to address new U.S. duties, including 25 percent "reciprocal" tariffs on South Korea.
Upon his arrival at an airport near Washington, Seoul's Industry Minister Ahn clarified that the allies' defense cost-sharing issue is not on the agenda for the upcoming trade talks. He emphasized South Korea's aim to eliminate the U.S. imposition of reciprocal tariffs on the Asian nation.
The Trump administration initiated the reciprocal tariffs on April 9, only to pause them for 90 days shortly thereafter. This pause provides time for countries to negotiate over the new U.S. import taxes and what Trump refers to as "non-tariff cheating" by trading partners.