South Korea to hold trade talks with the U.S. this week over tariff concerns

Miami Herald

20-05-2025

SEOUL, May 20 (UPI) -- South Korea sent a delegation to Washington to hold a second round of technical discussions this week over the Trump administration's proposed "reciprocal" tariffs, Seoul's Trade Ministry said Tuesday, with both sides aiming to reach an agreement by July.
A South Korean delegation led by senior ministry official Jang Sung-gil will visit Washington for talks slated to run from Tuesday through Thursday, the Trade Ministry said.
Discussions will be centered on the six areas of trade balance, non-tariff measures, economic security, digital trade, country of origin of products and commercial considerations, the ministry said. The agenda was set during a meeting held on the sidelines of last week's Asia-Pacific Economic Cooperation trade ministers' meeting, held on South Korea's southern resort island of Jeju.
"Through this technology consultation, we will respond from the perspective of prioritizing national interests in order to derive the direction of a mutually beneficial agreement centered on the areas that both sides have discussed so far," Jang said.
This week's discussions follow a first round of working-level talks held May 1 in Washington.
South Korea is facing 25% tariffs threatened by U.S. President Donald Trump as part of his sweeping package of "Liberation Day" trade measures. Trump announced the tariffs on April 2 but quickly put their implementation on hold for 90 days. Tariffs on steel and automobiles, two key South Korean industries, are already in place.
Seoul and Washington agreed to work toward a "package" deal on trade and other related issues before July 8, when the 90-day pause on tariffs is set to expire, South Korean Trade Minister Ahn Duk-geun said in April.
The uncertain trade environment has shaken the export-dependent Asian powerhouse, which saw its economy unexpectedly shrink in the first quarter of the year.
Last month, the International Monetary Fund sharply cut its forecast for South Korea's 2025 economic growth as part of an overall global decline reflecting "effective tariff rates at levels not seen in a century and a highly unpredictable environment."
The April edition of the IMF's quarterly World Economic Outlook projected 1% growth for Asia's fourth-largest economy, down from a 2% forecast in its previous edition.
South Korea is looking to get a reduction or exemption from the American tariffs, Trade Minister Ahn Duk-geun said Friday after he met with U.S. Trade Representative Jamieson Greer at the APEC event in Jeju.
"In Friday's meeting, we tried to raise awareness that South Korea has a bilateral free trade agreement with the United States, unlike some other countries, and has expanded trade and investment with the U.S. under the FTA," Ahn told reporters at a press briefing.
"We are continuing to request exemption from all reciprocal tariffs and item tariffs against us," Ahn added in a statement. "Our government will actively consult with the United States to establish a mutually beneficial solution by prioritizing national interests."
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