Washington: South Korea and the United States have agreed to work towards a "package" deal concerning new U.S. tariffs and other economic and industrial cooperation issues, aiming for completion by early July. This announcement was made by South Korea's Finance Minister Choi Sang-mok following high-level trade discussions held in Washington.
According to Yonhap News Agency, the two nations have set a target date of July 8 to finalize the agreement, coinciding with the end of U.S. President Donald Trump's 90-day pause on "reciprocal" tariffs. The discussions will cover four key areas: tariff and non-tariff measures, economic security, investment cooperation, and monetary policies. To facilitate this, working-level talks between Seoul's industry ministry and the Office of the U.S. Trade Representative (USTR) are planned to commence next week. Additionally, USTR Jamieson Greer is scheduled to visit South Korea for further discussions in mid-May during the Asia-Pacific Economic Cooperation talks.
The recent talks involved South Korea's Finance Minister Choi and Industry Minister Ahn Duk-geun meeting with U.S. Treasury Secretary Scott Bessent and USTR Jamieson Greer. The "two-plus-two" trade consultations were held at the Treasury Department and lasted approximately 85 minutes. Choi highlighted that both countries have reached a mutual understanding to pursue the "July package" with the goal of eliminating U.S. tariffs on South Korea by the July deadline.
The discussions have established a framework for future bilateral negotiations on tariffs and associated issues, moving away from the previously disorganized approach. This dialogue follows the Trump administration's imposition of country-specific reciprocal tariffs, including a 25 percent duty on South Korean goods, which were paused soon after implementation. South Korea is seeking exemptions from both reciprocal and sectoral tariffs that impact its economy, with particular focus on the automotive industry, which is vulnerable to the newly imposed auto tariffs.
On monetary policy, both sides agreed to delegate further consultations to South Korea's finance ministry and the U.S. Treasury Department. Choi emphasized the importance of considering various factors during future talks, such as South Korea's political schedule and the legislative process related to trade issues.
The discussions come ahead of South Korea's presidential election on June 3, following the ousting of President Yoon Suk Yeol. Choi expressed satisfaction with the orderly nature of the talks, emphasizing the shared commitment to conducting calm consultations.
Earlier, U.S. Treasury Secretary Bessent characterized the trade talks as "very successful," acknowledging the progress made during the bilateral meeting. He noted that technical discussions are expected to begin as early as next week, praising South Korea's preparedness and proactive approach.
While the talks did not address defense cost-sharing issues, South Korea presented a comprehensive vision for collaboration in the shipbuilding industry, highlighting investment opportunities and technological cooperation.