South Korea’s trade chief seeks ‘landing zone’ in US trade talks
Seoul is also seeking reductions in sectoral tariffs on industries such as autos and steel
[SEOUL] South Korea’s top trade official said negotiations with the US on tariffs have entered a critical phase, after wrapping up meetings in Washington and returning to Seoul late Thursday (Jul 10).
Trade Minister Yeo Han-koo held talks with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, pressing for an extension of the suspension of the proposed 25 per cent across-the-board tariffs, now scheduled to take effect on Aug 1. South Korea is also seeking reductions in sectoral tariffs on industries such as autos and steel.
“We are focusing on swiftly reaching a landing zone,” Yeo told reporters in a televised briefing after arriving at Incheon airport on Thursday. “There’s now trust built to accelerate negotiations in the next three weeks, covering both tariff and non-tariff issues.”
South Korea is pursuing what it calls a “manufacturing renaissance partnership” to align with America’s industrial policy, Yeo said. The US has shown strong interest in partnering with Korean firms to rebuild its manufacturing base in strategic sectors tied to national security, such as shipbuilding and semiconductors, he added.
Talks with the US are slowly progressing after a months-long leadership vacuum in Seoul, following the impeachment of President Yoon Suk-yeol, which stalled much of the negotiations. Yeo said he’s also watching how other countries such as Japan are navigating US tariff threats to fine-tune Korea’s strategy.
The discussions are unfolding as Washington pressures Seoul to pay more for hosting US troops, complicating the calculus for Korea’s negotiating team. US Secretary of State Marco Rubio told South Korea’s National Security Adviser Wi Sung-lac in a meeting on Monday that he hopes the two nations will continue to have close communications to reach an agreement before the August deadline, according to a readout from South Korea’s presidential office.
Among issues raised by the US are digital regulations in South Korea, including network usage fees imposed on foreign content providers and restrictions on exporting precise location data, which have long hindered firms such as Google. These digital trade concerns have become part of the broader negotiations, alongside pressure from the US to open up Korea’s agricultural market, particularly in sensitive items such as beef and rice.
Yeo also met with Senator Dan Sullivan during his trip to discuss the Alaskan liquefied natural gas project. Korea is eager to participate, he said, but needs greater commercial clarity from the US. He added that discussions will resume once the US makes further progress in its preparations. BLOOMBERG
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