South Korea and the U.S. have affirmed their commitment to reaching a tariff deal before the August 1 deadline.
Seoul’s top trade negotiators, Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo, recently held a joint meeting with U.S. Commerce Secretary Howard Lutnick in Washington and discussed ways to improve their countries’ trade relations, including forging a bilateral manufacturing partnership, according to the Ministry of Trade, Industry and Energy.
South Korea seeks lower reciprocal tariff rate
In the meeting, the two sides agreed to reach a “mutually beneficial” trade deal before the August 1 deadline, when reciprocal tariffs by the Donald Trump administration are set to come into force, and to hold an additional round of negotiations at the earliest possible date.
The U.S. president has said South Korea will be subject to a 25 percent reciprocal tariff unless it reaches a deal before time runs out.
For his part, South Korea’s Industry Minister Kim Jung-kwan strongly called for a reduction of the reciprocal tariff rate for South Korea, as well as sectoral tariffs on all imported cars and steel products, while proposing cooperation in strategic manufacturing industries, such as shipbuilding, semiconductor and batteries.
“We will make every effort to ensure that our companies are not placed at a disadvantage compared to competitors from other countries. The trade delegation will mobilize all its capabilities to achieve the best possible result in terms of national interest by August 1,” he said in a press release.
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Seoul to propose investment package plan
Pressure on South Korea has increased this week after Japan signed a deal with the United States, which U.S. President Donald Trump said would see Tokyo allowing greater market access for American products, including autos and some agricultural products.
Lutnick indicated U.S. officials were fully aware of the urgency felt by South Korean officials to get a deal, especially after Trump announced the agreement with Japan.
Seoul will propose to Washington an investment package plan worth at least $100 billion, which would involve major South Korean conglomerates like Samsung and Hyundai Motor Group, the Yonhap News Agency reported. The investment deal is expected to come after Japan pledged a $550 billion package of investment and loans as part of its trade deal, which Lutnick said would be used “at Donald Trump’s discretion.
