- South Korean minister urges tariff relief on automobiles and steel before July 9.
- Talks aim to avoid 25% US tariffs set to take effect from August 1.
- Seoul seeks a “mutually beneficial” supply chain partnership with the US.
Trade officials from South Korea and the US have talked about prolonging the July 9 deadline for trade agreements in a final effort to prevent broad tariffs from President Donald Trump.
On July 5 in Washington, South Korean Trade Minister Yeo Han-koo discussed manufacturing partnerships with US Trade Representative Jamieson Greer and urged for the reduction or removal of tariffs on items like automobiles and steel, as stated by Seoul’s Industry Ministry on July 6. The gathering occurred only days before a deadline to restore elevated US tariffs that were paused in April.
US President Donald Trump announced that Washington will issue letters to trade partners establishing unilateral tariff rates taking effect on August 1.
South Korea is an important ally of the US and a significant center for manufacturing automobiles, semiconductors, and batteries. If the 25 percent universal taxes are enforced, that would further weaken an economy already affected by slow domestic spending. In May, the central bank reduced its 2025 GDP growth prediction from 1.5 percent to 0.8 percent.
In a last-ditch effort to prevent the tariffs from taking effect, Mr. Yeo proposed a vision for a "mutually beneficial" manufacturing collaboration framework to enhance the two nations' industrial supply chains, emphasizing that any conclusive agreement must involve ending or restricting tariffs on vehicles and steel, among other items
“Both sides agreed that they have been conducting negotiations in good faith for a month since the launch of the new South Korean administration and that it is necessary to further narrow their differences,” the statement said, adding that the officials also discussed extending the deadline for additional talks.
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This was Mr. Yeo's second visit to the US within a week, indicating that Seoul is stepping up its efforts to regain momentum in trade discussions following President Lee Jae Myung's unexpected election victory in June, succeeding the removed Yoon Suk Yeol.
Yoon’s short martial law order at the close of 2024 sparked the nation’s most severe political unrest in years and led to a power void. Mr. Lee's national security adviser, Mr. Wi Sung-lac, traveled to Washington on July 6 to discuss matters with US Secretary of State Marco Rubio, who is also the acting national security adviser.
Talking to reporters before his departure, Mr. Wi stated he must boost his engagement since the negotiations are in a "crucial stage." He stated he intends to organize an initial summit between Mr. Lee and Mr Trump as well as discuss security and other bilateral issues during his trip. BLOOMBERG