NewsSouth Korea seeks tariff relief as key deal deadline looms

South Korea seeks tariff relief as key deal deadline looms

South Korea is counting on cooperation with the White House to reach an agreement on tariffs. The fourth-largest economy in Asia aims to finalize a deal with Donald Trump by July 8, reports CNBC. These agreements are the outcome of recent bilateral talks in Washington.

Deputy Prime Minister Choi Sang Mok during a visit to the USA in April 2024.
Deputy Prime Minister Choi Sang Mok during a visit to the USA in April 2024.
Images source: © Getty Images | MICHAEL A. MCCOY

South Korea is hoping for "calm" and "orderly" trade discussions with the United States. One of the largest Asian economies wants to avoid tariffs and anticipates securing an agreement by July 8. The following day, the 90-day suspension of tariffs imposed by Donald Trump will expire.

South Korean Finance Minister Choi Sang Mok and Minister of Trade, Industry, and Energy Ahn Duk Geun recently met in Washington with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer.

The officials agreed that further discussions between the partners will cover tariff and non-tariff measures, economic security, investment cooperation, and monetary policy. Choi reportedly emphasized that South Korea is a "reliable partner."

Additionally, Ahn Duk Geun proposed that South Korea could assist Americans in rebuilding their shipbuilding industry, aiming for balanced trade between the countries. Strengthening South Korea's energy security is also a key focus.

Korean cars conquer the USA

"Though South Korea, like most other countries, has been temporarily spared the 'reciprocal' tariffs, the country still faces a 25% levy on steel and aluminum imports to the United States, as well as another 25% on automobile imports, which are some of the country’s largest exports to the U.S.," highlights CNBC.

South Korea's automotive industry may be significantly impacted by Donald Trump's tariffs. Hyundai and Kia vehicles are among the eight best-selling car brands in the USA. South Korea is also the fourth-largest steel exporter to the United States.

After Trump announced the tariffs, the Hyundai corporation announced a record investment of $21 billion in the United States. A key component is the construction of a $5.8 billion steel mill in Louisiana, which will employ over 1,400 workers.

A crucial element of the negotiations will be the elections in South Korea, scheduled for June 3. On this day, Koreans will elect a new president. It's worth noting that the Constitutional Court removed former President Yoon Suk Yeol from office after he announced the introduction of martial law on December 3. Yoon Suk Yeol withdrew this decision six hours later due to pressure from the parliament.

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