South Korea and the United States have agreed to work on a trade package aimed at removing new U.S. tariffs before the pause on reciprocal tariffs ends in July, according to Seoul’s delegation in Washington after the first round of trade talks.
The meeting on Thursday was described as “very successful” by U.S. Treasury Secretary Scott Bessent. “We may be moving faster than I thought, and we will be discussing technical details as early as next week,” he told reporters.
Bessent, along with U.S. Trade Representative Jamieson Greer, met with South Korea’s Finance Minister Choi Sang-mok and Industry Minister Ahn Duk-geun. While the U.S. side expressed optimism, the South Korean delegation took a more cautious stance, calling the talks a good start but noting that the process would take time.
South Korea requested exemptions from U.S. tariffs, including item-specific and reciprocal tariffs, and offered to cooperate on shipbuilding, energy, and addressing trade imbalances. Minister Ahn said, “I think we had a very good start today,” and added that both sides agreed to hold working-level talks next week to determine the structure of negotiations. The goal is to finalize a “July package” by July 8.
Minister Choi stated that further talks will be held in South Korea on May 15-16 with Greer. The discussions will focus on four key areas: tariffs, economic security, investment cooperation, and currency policy.
Despite the positive tone from the U.S., trade experts suggest that a deal may not be reached before South Korea’s presidential election in June. Heo Yoon, an international trade professor at Sogang University in Seoul, noted that while the U.S. is pushing for quick progress, South Korea is proceeding cautiously.
Former trade minister Yeo Han-koo pointed out a mismatch in expectations, with South Korea indicating it might push for a deal close to the July deadline, while Bessent hinted that an agreement could be reached as early as next week.
Focus on Autos and Currency Policy
Bessent and other members of President Donald Trump’s administration met this week in Washington with foreign officials to discuss tariff issues during meetings of the International Monetary Fund and World Bank Group. South Korea, facing a 25% U.S. tariff, is one of the first countries with which the Trump administration has initiated trade talks. The U.S. also held discussions with Japan, which faces a 24% tariff.
South Korea has emphasized the automobile sector, which is hit hardest by the tariffs. Choi also mentioned that the finance ministry and the U.S. Treasury would hold separate talks on currency policy at Bessent’s request.
Choi clarified that defense costs were not discussed during the trade talks. President Trump had previously suggested that the cost of U.S. troops in South Korea could be part of broader trade negotiations, but South Korea’s foreign minister insisted that defense matters are separate from trade discussions.
Political Sensitivities in South Korea
There was also no mention of renegotiating the bilateral free trade agreement signed in 2007 and revised during Trump’s first term. South Korean officials requested understanding from the U.S. that the political schedule, including the upcoming election, could affect the pace of negotiations.
Prime Minister Han Duck-soo, serving as acting president, has expressed a willingness to reach a deal, highlighting South Korea’s historical ties with the U.S. following the Korean War. However, the main liberal Democratic Party, which is favored to win the election, has criticized the government for rushing the talks for political gain. DP spokesperson Cho Seung-rae called on Han to halt the negotiations.
Political experts have also raised concerns about the ability of an acting president to make firm commitments, especially on energy projects and defense costs, without a clear mandate from the people.
Yeo emphasized that the interim government’s authority might complicate negotiations, stating, “The prime minister of the impeachment government has no mandate from the Korean people to commit to a deal.”
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