Washington: South Korea's top economic officials have engaged in high-level trade talks with U.S. Commerce Secretary Howard Lutnick, as disclosed by Seoul's finance ministry. These discussions occurred just days before a critical deadline for new U.S. tariff measures.
According to Yonhap News Agency, Finance Minister Koo Yun-cheol, Industry Minister Kim Jung-kwan, and Trade Minister Yeo Han-koo met with Lutnick in Washington on Tuesday for two hours to address bilateral trade issues. The meetings are in response to the U.S.'s preparation to impose "reciprocal" tariffs, potentially including a 25 percent duty on South Korean goods, set to begin on Friday unless a last-minute agreement is reached.
In a possible sign of relief, U.S. President Donald Trump announced Monday that Washington is contemplating setting tariff rates between 15 percent and 20 percent for countries without finalized trade deals with the U.S. Trump expressed a willingness to lower tariff rates for countries presenting improved trade offers, even if the initial levies have been announced. For instance, Japan successfully negotiated a reduction from a 25 to 30 percent tariff to 15 percent, with an agreement that includes establishing a US$550 billion fund aimed at enhancing U.S. investments.
Lutnick has encouraged South Korean officials to present their "best and final" offer during a separate meeting in Scotland, as reported by the Wall Street Journal, citing sources familiar with the discussions. Following their talks in Washington last week, Kim and Yeo traveled to Scotland to continue negotiations with Lutnick.
Lutnick indicated that Trump needs convincing on why a new agreement with South Korea is necessary, given the U.S. has already established deals with major trading partners, including the European Union and Japan. Kim has participated in multiple negotiation rounds with Lutnick, who is instrumental in coordinating high-level negotiations with major trading nations by drafting preliminary agreements for Trump's final approval.
With other significant economies having secured trade deals with Washington, South Korea, whose economy heavily depends on exports, has intensified its diplomatic efforts to seek an exemption or reduce the planned duties' scope.
Koo is scheduled to meet U.S. Treasury Secretary Scott Bessent in Washington on Thursday, as stated by the finance ministry. Upon arriving in Washington on Tuesday, Koo affirmed the government's dedication to resolving the issue diplomatically, highlighting a new investment initiative focused on bolstering bilateral cooperation.
The initiative, tentatively named "Make American Shipbuilding Great Again" (MASGA), envisions substantial South Korean investments in the U.S. shipbuilding sector. This is part of broader efforts to revitalize the American industry amid increasing competition from China. "We will thoroughly explain key areas of Korea-U.S. economic cooperation, including shipbuilding, and conduct negotiations centered on the national interest," Koo told reporters.
Foreign Minister Cho Hyun also plans to visit Washington for discussions with Secretary of State Marco Rubio.