Seoul: South Korea is examining the economic feasibility of several items that could emerge from trade negotiations with the United States, aiming to understand the impact these items might have on the national economy, government sources revealed.
According to Yonhap News Agency, the Ministry of Trade, Industry and Energy has recently tasked the Korea Institute for International Economic Policy (KIEP) with conducting a feasibility study on the agenda items involved in the ongoing trade discussions between Seoul and Washington. The two nations are striving to finalize a comprehensive trade deal covering tariffs, non-tariff barriers, and economic cooperation by July 8, coinciding with the end of the 90-day pause on the Trump administration's reciprocal tariffs.
South Korea is working towards achieving a complete exemption or reduction of the Trump administration's 25 percent reciprocal tariffs on the country, as well as on sector-specific tariffs affecting imports like steel and automobiles. During a recent working-level meeting, the U.S. Trade Representative's office urged Seoul to address non-trade barrier issues highlighted in its 2025 National Trade Estimate (NTE) Report on Foreign Trade Barriers, as stated by a Seoul trade official.
The NTE report outlines a variety of Korea's non-tariff measures, including an import ban on American beef from cattle aged 30 months or older, South Korea's "offset" defense trade policy, digital trade barriers like restrictions on the export of location-based data, emission-related regulations on imported vehicles, and pharmaceutical pricing policies. Although specifics of Washington's requests remain undisclosed, industry analysts suggest that the U.S. may have also targeted Seoul's high tariffs on rice imports, which President Trump cited as an example of foreign trade barriers when announcing the reciprocal tariffs.
South Korea's baseline tariff on rice imports is 513 percent, but the nation enforces only a 5 percent tariff on an annual import quota of up to 132,304 tons of U.S. rice. Under South Korea's trade treaty law, the government is required to conduct economic feasibility studies on new trade agreements that could significantly affect the national economy and present a report to the National Assembly.
The ongoing tariff negotiations with the U.S. are expected to be handed over to South Korea's next government, as the country is set to hold its presidential election next Tuesday, with the new administration anticipated to assume office the following day. A government official noted that while the U.S. has raised numerous issues as part of its negotiation strategy, the timeline and South Korea's domestic circumstances suggest that reaching a swift conclusion on these matters may be challenging.