- Trade Minister Yeo Han-koo meets US officials seeking tariff exemptions.
- Talks expand beyond tariffs to include tech and manufacturing ties.
- Tariffs and export controls impact South Korea’s export-driven economy.
South Korea restated its request for exemption from US tariffs, including those impacting crucial sectors such as automobiles and steel, Trade Minister Yeo Han-koo mentioned after his initial meeting with US officials since assuming office.
Yeo engaged in discussions on Monday with US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer in Washington, as stated by a government announcement. Both parties reiterated their collective dedication to quickly achieving a mutually advantageous agreement, without specifying a timeline.
Yeo stated that South Korea's current administration, supported by a robust democratic mandate, can now move forward with negotiations that had previously halted because of political gridlock. He stated that conversations ought to expand beyond tariffs to encompass wider collaboration in manufacturing and cutting-edge technologies.
South Korea, an important US partner and a significant center for car, semiconductor, and battery production, has had its firms impacted by US tariffs. The Trump administration enacted one of the steepest universal tariffs among its allies on the Asian nation, although the 25% levy is paused until July 9, while different countries discuss a trade agreement with the US.
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The gatherings occur at a crucial time as President Lee Jae Myung aims to rejuvenate an economy shaken by tariff unpredictability. South Korea’s economy, dependent on exports, has suffered due to tariffs imposed by US President Donald Trump, prompting the central bank to reduce its 2025 GDP growth prediction from 1.5% to 0.8%.
Yeo also expressed the worries of South Korean industry regarding the latest changes in US export control policy.
US export regulations have emerged as a critical point in trade discussions, with Washington reinforcing limitations on technology exchanges to rivals like China. These actions frequently have a cascading effect throughout global supply chains—affecting partners such as South Korea that are closely involved in high-tech manufacturing.