Seoul: South Korea and the United States are poised to expedite tariff negotiations after Presidents Lee Jae-myung and Donald Trump committed to reaching a mutually satisfactory agreement during their initial phone call since Lee assumed office. The leaders engaged in a 20-minute conversation, focusing on tariff issues and urging negotiators to achieve tangible outcomes before the July 8 deadline for the expiration of a U.S. waiver on reciprocal tariffs for South Korea and other key trading partners.
According to Yonhap News Agency, Lee's conversation with Trump occurred two days after he took office, concluding a period of political and diplomatic uncertainty following the ousting of former President Yoon Suk Yeol in April. Experts have pointed out that while the Trump administration has been proactive in seeking early agreements with major trade partners, negotiations with South Korea had been delayed due to a lack of political leadership during the transition period in Seoul.
Scott Bessent, the U.S. treasury secretary and chief negotiator on tariffs, noted last month that even amidst its government transition, Seoul presented "very good proposals" before the election cycle commenced. With the waiver deadline approaching and both leaders emphasizing the need for a swift resolution, the third round of negotiations is anticipated to occur this month.
The two countries had previously aimed for a comprehensive "July package" before the July 8 cut-off. During the second round of talks, South Korean delegates from various ministries exchanged detailed perspectives with their U.S. counterparts. Washington expressed concerns over non-tariff barriers, particularly regulations affecting beef and other agricultural products, which were highlighted in its National Trade Estimate report. Consequently, South Korea is expected to offer more specific responses in the upcoming third round after a thorough interagency review.
A senior South Korean trade official remarked last month that the second round was significant in identifying specific areas of U.S. interest while clarifying Seoul's stance. The official stated that coordination with relevant ministries would address these demands in the next round. For South Korea, which depends heavily on exports, the challenge lies in reducing the 25 percent reciprocal tariffs imposed by the Trump administration while defending its positions in sectors under U.S. scrutiny.
Seoul is also striving for the elimination or reduction of item-specific tariffs imposed by the U.S. on products like automobiles, steel, and aluminum. A senior Seoul official emphasized that they are closely reviewing U.S. demands in collaboration with relevant ministries, and the guidance for the third round of talks will adhere to President Lee's negotiation framework.