Washington: U.S. Treasury Secretary Scott Bessent described recent high-level trade discussions with South Korea as "very successful." These talks, held in Washington, involved U.S. Trade Representative Jamieson Greer, South Korean Finance Minister Choi Sang-mok, and Trade Minister Ahn Duk-geun. The discussions are part of the ongoing "two-plus-two" trade consultations at the Department of the Treasury.
According to Yonhap News Agency, Bessent highlighted the progress made during the bilateral meeting, expressing optimism about the possibility of discussing "technical terms" as early as next week. He commended South Korea for coming prepared and noted the potential for reaching an agreement on understanding soon. However, Bessent did not specify the proposals put forth by South Korea, which is seeking to eliminate the Trump administration's "reciprocal" tariffs and protect its industries from new U.S. duties.
The Trump administration initially imposed country-specific "reciprocal" tariffs, including 25 percent duties, starting April 9, but paused them for 90 days to allow for negotiations. The 25 percent tariff on automobiles took effect on April 3, with similar duties on auto parts expected by May 3. The outcome of Thursday's talks is anticipated to be disclosed later.
Upon arriving in Washington, Minister Ahn stated South Korea's intention to remove the reciprocal tariffs and address the auto tariff measures imposed by Washington. The new U.S. tariffs on imported cars have been a significant concern for South Korea, as the U.S. is a major market for its auto exports.
In 2022, South Korea's car exports to the U.S. amounted to $34.7 billion, representing 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. Last month, Hyundai Motor Group announced plans to invest $21 billion in the U.S. by 2028, reflecting efforts to boost domestic manufacturing and reduce trade deficits.
Observers suggest that the talks may have addressed various bilateral trade issues, including U.S. tariffs and non-tariff barriers, such as South Korea's ban on American beef from cattle over 30 months old. Despite President Trump's "one-stop shopping" negotiation approach, which could expand the scope of discussions beyond trade, Seoul officials clarified that defense-cost sharing was not part of the trade talks agenda.