Washington: U.S. Commerce Secretary Howard Lutnick announced his upcoming meeting with South Korean negotiators in Washington, following the postponement of bilateral high-level trade talks originally scheduled for this week. The meeting comes amid increased efforts from Seoul to finalize a trade deal that could potentially eliminate or reduce the 25 percent "reciprocal" tariff threatened by the Trump administration, set to be enforced on August 1.
According to Yonhap News Agency, Lutnick's remarks coincide with the visit of South Korea's Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo to Washington. Lutnick emphasized in a CNBC interview that the Korean officials are eager to reach a trade agreement. He noted that the recent trade agreement between the U.S. and Japan has likely intensified the urgency for the Korean negotiators.
Lutnick referenced the reaction in Korea to the Japan-U.S. trade deal, suggesting a competitive dynamic between the two nations. President Donald Trump announced the agreement with Tokyo earlier this week, which includes reducing the 25 percent reciprocal tariff for Japan to 15 percent. In exchange, Japan agreed to substantial investments in the U.S., increased U.S. rice imports, and the purchase of Boeing aircraft. This development has seemingly spurred South Korea to accelerate its efforts in securing a favorable trade arrangement with the U.S.