Washington: U.S. Commerce Secretary Howard Lutnick stated on Thursday that he could hear "expletives" emanating from South Korea following the recent trade deal between Japan and the U.S. administration under President Donald Trump.
According to Yonhap News Agency, the comments from Lutnick suggest that the agreement, which alters the tariff landscape between the United States and Japan, may have heightened a sense of urgency for South Korea. The country is striving to secure an arrangement to circumvent or reduce the impending 25 percent "reciprocal" tariff slated to become effective on August 1. Lutnick, in a CNBC interview, noted that the reaction from South Korea was palpable when they learned about the Japanese trade deal, given the competitive dynamics between South Korea and Japan.
The agreement, announced by President Trump on Tuesday, lowers the threatened tariff for Japan from 25 percent to 15 percent. In exchange, Japan committed to investing $550 billion in the U.S., increasing U.S. rice imports by 75 percent, and purchasing 100 Boeing aircraft, among other terms. Lutnick mentioned that he is scheduled to meet with South Korean negotiators in Washington, following the postponement of high-level bilateral trade talks initially set for Friday.
South Korea's Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo are presently in Washington as part of Seoul's intensified efforts to negotiate a deal with the U.S. Lutnick confirmed that discussions with the South Korean delegation are planned for the day. Although Seoul and Washington had originally scheduled "two-plus-two" trade talks for Friday, involving key figures like Seoul's Finance Minister Koo Yun-cheol and U.S. Treasury Secretary Scott Bessent, these talks are being rescheduled due to a "scheduling conflict." A Treasury spokesperson indicated that Bessent anticipates meeting his South Korean counterparts "soon."