South Korea to Intensify Trade Deal Efforts with U.S.

By Jihoon Lee and Hyunjoo Jin
SEOUL (Reuters) – South Korea will enhance efforts to secure a trade deal with the United States in the upcoming weeks, as announced by Seoul’s chief negotiator on Tuesday amidst political unrest affecting tariff negotiations.

The remarks followed President Lee Jae Myung’s emphasis on the importance of maintaining competitive tariff rates with other nations.

> “Progress has been sluggish for us, compared with other major countries, due to various uncertainties amid intense global tariff negotiations,” said Trade Minister Yeo Han-koo during a meeting with other ministry officials.

The establishment of a task force aims to coordinate government responses. With a new administration in place, authorities plan to actively engage in discussions to prepare a mutually beneficial deal.

Currently, South Korea faces a blanket 10% tariff and a 25% specific duty that is paused for 90 days. In late April, an agreement was made in the initial round of talks to reduce tariffs by July 8.

However, political changes had previously stalled negotiations. Seoul, which maintains a free trade agreement with Washington, is seeking exemptions from new U.S. tariffs, although this goal may prove challenging.

Yeo was appointed by President Lee, who won a snap election on June 3 and indicated during his campaign that there was no urgency for a deal with the U.S. Nonetheless, he aims to expedite negotiations and was scheduled to meet U.S. President Donald Trump during the Group of Seven summit in Canada. This meeting was, however, canceled as Trump cut his visit short to address the escalating conflict between Israel and Iran.

As Lee departed for Canada, he highlighted the necessity for South Korean firms to avoid being placed in a “disadvantageous situation” concerning tariff rates compared to other countries. According to Kim Yong-jin, a management professor at Sogang University in Seoul, it is crucial to compare tariffs with those of competing nations.

A South Korean battery firm executive, speaking anonymously, reiterated Lee’s views, stressing the importance of U.S. tariff decisions on rival countries like China and Japan in sectors like chips, batteries, and vehicles.