US, South Korea Agree to Pursue Trade Deal Ahead of Tariff Deadline

by

Treasury Secretary Scott Bessent says the high-level meeting was ’very successful.’

South Korea and the United States agreed on Thursday to pursue a trade deal that will help Seoul avoid U.S. tariffs before President Donald Trump’s 90-day pause on reciprocal tariffs ends in July.

South Korean Finance Minister Choi Sang-mok announced the deal after he and Industry Minister Ahn Duk-geun held talks with U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer in Washington.

“Our side assesses that the two sides have come to share an understanding that they will craft a ‘July package’ aimed at removing (U.S.) tariffs (on South Korea) by July 8 when the pause on reciprocal tariffs ends,” Choi told reporters, according to Yonhap News Agency.

The trade package would focus on four areas of negotiation—tariff and non-tariff measures, economic security, investment cooperation, and monetary policies—between the two nations, according to Choi.

Bessent said the high-level meeting with South Korean officials was “very successful,” noting that both sides have agreed to initiate talks on the agreement’s technical terms soon.

“We may be moving faster than I thought, and we will be talking technical terms as early as next week,” he told reporters at the White House. “So South Koreans came early, they came with their A game, and we will see if they follow through on that.”

Related Stories

South Korea Says It Will Hold Trade Talks With US This Week
Data Reveal Drop in US Imports From China Amid Tariff Showdown

Neither government has yet released a joint statement regarding their trade talks.

Trump announced a raft of reciprocal tariffs on nearly all countries on April 2, including a 25 percent tariff on South Korean automobile, steel, and aluminum imports, as part of an effort to close trade deficits and curb what he said were unfair trade practices against the United States.

The president subsequently granted a 90-day pause to most countries, allowing time for negotiations.

South Korean Concerns

Choi stated that his delegation raised South Korea’s concerns during the trade talks about the negative impact of the tariffs on automobiles, noting that this sector would be the most adversely affected.

“We explained concerns that the imposition of reciprocal and sectoral tariffs could negatively affect bilateral economic cooperation, and we conveyed our position that exemptions and exceptions from tariffs on [South Korea] are needed,” he said.

Choi added that both sides expressed that they will conduct “calm, orderly consultations without haste” to address the tariff issue, according to local reports.

South Korea’s government said the meeting was arranged at the request of the United States. It also followed a phone conversation between the East Asian nation’s acting President Han Duck-soo and Trump on April 8.
Trump stated on Truth Social that they discussed tariffs, liquefied natural gas (LNG), an Alaska gas project, as well as “payment for the big time Military Protection we provide to South Korea.”

“Their top TEAM is on a plane heading to the U.S., and things are looking good,” Trump said. “We are likewise dealing with many other countries, all of whom want to make a deal with the United States.”

Following that talk, Han said that he expressed South Korea’s desire to strengthen its alliance with the United States and enhance cooperation in trade balance, shipbuilding, and LNG.

“I hope the bilateral alliance with the U.S., the backbone of our diplomacy and security, can be further expanded and bolstered under the new U.S. administration,” he stated, local media reported.

South Korea’s economy is vulnerable to potential trade losses from U.S. tariffs, as a significant portion of its earnings comes from exporting products worldwide, especially to the American market.

The country’s top exports are integrated circuits, automobiles and parts, refined petroleum, and passenger and cargo ships, according to a report from the Observatory of Economic Complexity.

In February, South Korea saw a year-on-year growth in exports, primarily driven by increased exports to the United States, Singapore, and Vietnam, the report states.

Jacob Burg and Reuters contributed to this report.

Original News Source Link – Epoch Times

Running For Office? Conservative Campaign Consulting – Election Day Strategies!