Washington: South Korea and the United States have agreed to work towards a "package" deal on U.S. tariffs and other economic and industrial cooperation issues by early July, South Korea's Finance Minister Choi Sang-mok announced. This agreement emerged during high-level trade talks held in Washington, aiming to address four key areas: tariff- and non-tariff measures, economic security, investment cooperation, and currency policies.
According to Yonhap News Agency, the two nations plan to finalize the deal by July 8, coinciding with the end of U.S. President Donald Trump's 90-day pause on "reciprocal" tariffs. Working-level talks between Seoul's industry ministry and the Office of the U.S. Trade Representative (USTR) are set to commence next week. USTR's Jamieson Greer is also expected to visit South Korea for further discussions during the Asia-Pacific Economic Cooperation talks starting May 15.
Finance Minister Choi and Industry Minister Ahn Duk-geun met with U.S. Treasury Secretary Scott Bessent and USTR Jamieson Greer for "two-plus-two" trade consultations at the Treasury Department. Choi expressed that both sides are committed to crafting a "July package" to remove U.S. tariffs on South Korea by the deadline.
These discussions aim to establish an organized framework for future bilateral talks, contrasting with the previous disorganized approach. The South Korean delegation emphasized the need for exemptions from both reciprocal and sectoral tariffs, particularly highlighting the potential negative impact on their automotive industry.
On currency policy, the two countries agreed to engage in consultations between Seoul's finance ministry and the U.S. Treasury Department. Choi also stressed the importance of considering South Korea's political schedule and domestic trade laws during the negotiations.
The talks follow the Trump administration's imposition of country-specific reciprocal tariffs, including a 25 percent duty on South Korean goods, which was paused shortly after its introduction. South Korea's request for tariff exemptions comes ahead of its presidential election on June 3, following the ousting of President Yoon Suk Yeol.
U.S. Treasury Secretary Scott Bessent described the talks with South Korea as "very successful," noting the swift progress and South Korea's proactive approach. He highlighted South Korea's detailed vision for collaboration in the shipbuilding industry, aligning with the Trump administration's efforts to revitalize America's shipbuilding sector.
While defense cost-sharing issues were not discussed, the possibility of expanding talks beyond trade was noted, as President Trump has previously suggested a broader negotiation approach.