With tariff clock ticking, Korea seeks ‘practical, win-win' deal with US

Korea Herald

8 hours ago

'Real game begins now,' says Seoul's trade minister, signaling tougher phase of talks with Washington ahead of Aug. 1 deadline
SEJONG ― With under three weeks to go before the US activates its "reciprocal" tariffs on Aug. 1, South Korea is accelerating negotiations to prevent heavy duties on key export items, aiming for a "practical, win-win" agreement.
Trade Minister Yeo Han-koo said Monday that while time is limited, "the real game begins now," noting that Korea "will not sacrifice substance for speed."
'With less than 20 days remaining, this is a period of decisions and strategic choices," Yeo told reporters in a briefing over his Washington trip last week. "We must now prepare a give-and-take process to identify a viable landing zone."
Yeo traveled to Washington on July 5 for six days of tariff talks, during which he met with his counterpart, US Trade Representative Jamieson Greer, as well as other senior officials including US Commerce Secretary Howard Lutnick.
There, he emphasized Korea's concerns over key tariff items and pushed for progress on a mutually beneficial framework focused on industrial cooperation.
'Negotiations can take a year or progress overnight. While time is short, we could adopt a principled framework like the US-UK deal, reaching consensus on major points while continuing detailed negotiations postdeadline," Yeo said. "Our focus is on maximizing national interest through pragmatism."
The US is currently negotiating with more than 20 countries as part of its effort to overhaul its global trade network. With its focus on reducing the trade deficit, Washington is demanding that Korea increase investments and purchases in the US, as well as modify regulatory practices seen as barriers to US exports.
Seoul is pushing for the removal or a significant reduction of what it calls unfair tariffs, including the 25 percent reciprocal tariffs as well as 25 percent on cars and 50 percent on steel.
Building on the US' interest in revitalizing its manufacturing sector, Korea has proposed a "manufacturing renaissance partnership" aimed at strengthening industrial cooperation through corporate investment and procurement in the US alongside technological collaborations.
Addressing the US' concerns over nontariff barriers, Yeo said, "some are reasonable while others are overly subjective, clearly framed from the US companies' perspectives."
Yeo still hinted that Korea could make certain regulatory changes when they appear to align with Korean efforts to modernize its systems and strengthen competitiveness.
Among the nontariff barriers the US points to are restrictions on beef and rice imports, and limits on the exporting of high-resolution map data ― a long-standing request from Google.
"Agricultural issues have never been easy, whether we are negotiating with the US, Southeast Asia, or any other country. But through those challenges, Korea's industrial competitiveness has strengthened," Yeo said. "Agriculture is an area that requires strategic judgment."
On the Alaska liquefied natural gas project, which the US is encouraging Korea to join, Yeo noted that more time is needed to reach a legally binding commitment, as the US is still preparing the basic commercial data required for assessment.
Yeo said he will be coordinating with ministries and the National Assembly this week to finalize the domestic mandate, and he plans to travel to the US at least once more before the August deadline to seal the deal.
"We will protect what we must, but also consider flexibility in areas less critical," he said.
Given how the Trump administration is concurrently negotiating with over 20 countries as part of its broader push to restructure global trade networks, Yeo emphasized the importance of closely observing the progress of other talks.
'Even countries that appeared to be nearing a deal, like the EU, Mexico, Canada and Japan, have seen roller-coaster developments. No country can afford to let its guard down, even after the talks conclude."