US trade deal remains unclear: South Korean prez as Trump's deadline looms

Business Standard

a day ago

Trump's tariff hikes and other America First policies are major challenges for Lee's month-old government, as are North Korea's advancing nuclear programme and domestic economic woes
AP Seoul
South Korean President Lee Jae Myung said that it remained unclear whether Seoul and Washington could conclude their tariff negotiations by the deadline set by President Donald Trump for next week, noting Thursday that both nations were still working to clarify their positions and identify areas of agreement.
Speaking at his first news conference since taking office last month, Lee also reiterated his intentions to improve badly frayed ties with North Korea, though he acknowledged that mutual distrust between the Koreas is too deep to heal anytime soon.
Trump's tariff hikes and other America First policies are major challenges for Lee's month-old government, as are North Korea's advancing nuclear programme and domestic economic woes. Lee, a liberal, came to power after winning a snap presidential election caused by the ouster of conservative President Yoon Suk Yeol over his ill-fated imposition of martial law in December.
Lee calls tariff talks with US clearly not easy
Lee said the tariff negotiations with the US have been clearly not easy and stressed that the countries must reach mutually beneficial outcomes.
It's difficult to say with certainty whether we will be able to reach a conclusion by July 8. We are now doing our best, Lee said. What we need is a truly reciprocal outcome that benefits both sides and works for everyone, but so far, both sides are still trying to define exactly what they want.
Trump's 90-day pause in global reciprocal tariffs is set to expire on July 9, potentially exposing South Korean products to 25 per cent tax rates.
Washington has separately been seeking higher duties on specific products such as automobiles and semiconductors, which are key exports for South Korea's trade-dependent economy. There are growing concerns in Seoul that Trump may also demand a broader deal requiring South Korea to pay significantly more for the 28,000 US troops stationed in the country to deter North Korean threats.
Lee has consistently urged patience on tariffs, arguing that rushing to secure an early deal would not serve the national interest. His trade minister, Yeo Han-koo, was reportedly arranging a visit to Washington for possible meetings with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick.
Lee pushes to revive long-stalled talks with North Korea
On North Korea, Lee said he would seek to restore long-dormant talks with Pyongyang, whose expanding military cooperation with Russia pose major security concerns to their neighbours.
I think we should improve relations with North Korea based on a reliable coordination and consultation between South Korea and the US, Lee said. But I expect that won't be easy as mutual antagonism and distrust are too serious.
Lee previously faced criticism that he was tilting toward North Korea and China and away from the US and Japan. But during his campaign, Lee promised to pursue pragmatic diplomacy, saying he would bolster the alliance with the US while also seeking to repair ties with North Korea, China and Russia. Some critics say it's too difficult to satisfy all parties.
Lee added that he had proposed resuming more frequent summits with Japan.
Lee's government has made proactive efforts to build trust with North Korea, halting frontline anti-Pyongyang propaganda broadcasts and taking steps to ban activists from flying balloons carrying propaganda leaflets across the border.
Trump has also expressed intent to resume diplomacy with North Korean leader Kim Jong Un. Lee has said he would support Trump's push.
North Korea hasn't publicly responded to the conciliatory gestures by Trump and Lee. But officials said North Korean propaganda broadcasts are no longer being heard in South Korean border towns.
North Korea has refused talks with the US and South Korea since earlier Trump-Kim nuclear talks collapsed in 2019. North Korea is now working to expand relations with Russia, supplying troops and weapons to support its war against Ukraine in return for economic and military assistance.
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