Washington: South Korea's top trade negotiators recently met with U.S. Commerce Secretary Howard Lutnick in Washington, aiming to finalize a tariff agreement before the looming August 1 deadline, as announced by Seoul's industry ministry.
According to Yonhap News Agency, Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo held discussions with Lutnick in the U.S. capital. Their discussions focused on enhancing trade relations and establishing a bilateral manufacturing partnership. The officials emphasized the importance of reaching a "mutually beneficial" trade deal before the August 1 deadline, when reciprocal tariffs introduced by the Donald Trump administration are set to take effect. An additional round of negotiations is planned to expedite the process.
The U.S. president has indicated that South Korea could face a 25 percent reciprocal tariff if a deal is not reached in time. Minister Kim urged for a reduction in the reciprocal tariff rate for South Korea and discussed sectoral tariffs on imported cars and steel products. He also proposed collaboration in strategic manufacturing sectors like shipbuilding, semiconductors, and batteries.
Kim assured that efforts would be made to prevent South Korean companies from being disadvantaged compared to international competitors. "The trade delegation will mobilize all its capabilities to achieve the best possible result in terms of national interest by Aug. 1," Kim stated in a press release.
In a related effort, Kim met with U.S. Energy Secretary Chris Wright to explore cooperation in renewable energy and energy security. Meanwhile, Yeo engaged in virtual discussions with Alabama Gov. Kay Ivey. The ongoing diplomatic efforts are set to continue with Kim planning to meet U.S. Interior Secretary Doug Burgum, and Yeo scheduling meetings with U.S. Trade Representative Jamieson Greer and Texas Gov. Greg Abbott.
A high-level "2+2" trade consultation involving Yeo, Finance Minister Koo Yun-cheol, and their U.S. counterparts was initially set for Friday but was postponed due to a scheduling conflict with Treasury Secretary Scott Bessent. During this meeting, the Korean delegation intended to propose a significant investment package to reduce Seoul's trade surplus with Washington. However, the Korean government has not confirmed this plan, citing the sensitivity of the ongoing talks.