Washington: South Korea and the United States conducted high-level trade discussions in Washington on Thursday. The Asian country is seeking the removal of the Trump administration's extensive "reciprocal" tariffs and aims to protect its industries from other new U.S. duties.
According to Yonhap News Agency, South Korea's Finance Minister Choi Sang-mok and Trade Minister Ahn Duk-geun met with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer. This marked the first "two-plus-two" trade consultations between the allies, held at the Treasury Department in the U.S. capital.
The Trump administration had initiated country-specific "reciprocal" tariffs, including 25 percent duties, on April 9, followed by a 90-day pause to facilitate negotiations. A 25 percent levy on automobiles was implemented on April 3, with similar duties on some auto parts expected by May 3.
The outcome of the discussions is anticipated to be revealed later in the day. Upon his arrival in Washington, Ahn stated that Seoul intends to negotiate the removal of the reciprocal tariffs and swiftly address the auto tariff issues imposed by Washington.
The new U.S. tariff on imported cars is a significant concern for South Korea, Asia's fourth-largest economy, as the U.S. is a major market for its auto exports. Last year, South Korea's total car exports to the U.S. amounted to $34.7 billion, accounting for 49.1 percent of its total car exports. Hyundai Motor Group and GM Korea exported approximately 970,000 and 410,000 units to the U.S., respectively, in the previous year.
Recently, Hyundai Motor Group announced a $21 billion investment plan in the U.S. through 2028. This comes as U.S. President Donald Trump employs tariffs to enhance domestic manufacturing and reduce trade deficits.
Observers noted that the talks might address various bilateral trade issues, including U.S. tariffs and non-tariff barriers like South Korea's ban on American beef from cattle older than 30 months. Prior to the discussions, Seoul officials clarified that defense-cost sharing matters would not be part of the agenda, despite Trump's "one-stop shopping" negotiation approach raising expectations that the meeting might extend beyond trade matters.
The trade talks were held at the U.S. Department of the Treasury near the White House, minimizing the possibility of an unexpected appearance by Trump. The previous week, Trump unexpectedly joined trade talks with Japan, led by Japanese Economic Revitalization Minister Ryosei Akazawa, and later claimed "big progress" on social media.