South Korea, US agree to seek 'July package' deal on tariff, other issues

IANS April 25, 2025 197 views

South Korea and the United States have initiated high-level trade discussions to craft a comprehensive economic agreement by July 8. The negotiations aim to address reciprocal tariffs, economic security, and bilateral investment challenges. Both nations have agreed to pursue a structured, calm approach to resolving trade tensions. The talks represent a significant diplomatic effort to prevent potential economic disruptions and maintain strong bilateral relations.

"We established a basic framework by narrowing the scope of subjects for talks" - Finance Minister Choi Sang-mok
Washington, April 25: South Korea and the United States concurred on joint efforts to craft a "package" agreement on new U.S. tariffs, and economic and industrial cooperation issues by early July, Seoul's finance minister said, as the allies held high-level trade talks in Washington, DC.

Key Points

1

US-Korea seek comprehensive trade resolution by July 8

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Bilateral talks to cover tariffs, economic security, investment

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Discussions aim to remove reciprocal trade barriers

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Working-level negotiations to begin next week

Finance Minister Choi Sang-mok told reporters that the two sides agreed to pursue the deal by July 8 -- when U.S. President Donald Trump's 90-day pause on "reciprocal" tariffs ends -- through talks focusing on four categories -- tariff- and non-tariff measures; economic security; investment cooperation; and currency policies, reports Yonhap news agency.

Toward that end, Seoul's industry ministry and the Office of the U.S. Trade Representative (USTR) plan to start working-level talks next week, while USTR Jamieson Greer is set to visit South Korea for high-level talks on the margins of the ministerial Asia-Pacific Economic Cooperation talks slated to kick off on May 15.

These broad agreements came as Choi and Industry Minister Ahn Duk-geun met U.S. Treasury Secretary Scott Bessent and Greer for the "two-plus-two" trade consultations that took place at the Treasury Department for around 85 minutes.

"Our side assesses that the two sides have come to share an understanding that they will craft a 'July package' aimed at removing (U.S.) tariffs (on South Korea) by July 8 when the pause on reciprocal tariffs ends," Choi told Korean reporters at the South Korean Embassy.

This week's talks set a broad framework on how future bilateral talks on tariffs and other issues should proceed -- a departure from earlier discussions that were carried out in a somewhat disorganised manner, according to Seoul officials.

"Our assessment is that through the two-plus-two meeting today, which is a starting point for consultations, we established a basic framework by narrowing the scope of subjects for talks and reaching an understanding vis-a-vis the consultation schedule," Choi said.

"It is meaningful that the two countries were able to share the view toward conducting calm, orderly consultations without haste."

The talks came after the Trump administration started imposing country-specific reciprocal tariffs, including 25 percent duties on South Korea, on April 9, only to pause them shortly afterward. Its 25 duties on automobiles went into effect on April 3 with the same-rate levies on some auto parts set to come no later than May 3.

The South Korean delegation requested exemptions of both reciprocal and sectoral tariffs that affect Asia's fourth-largest economy.

"We explained (South Korea's) concerns that the imposition of reciprocal and sectoral tariffs could negatively affect bilateral economic cooperation, and we conveyed our position that exemptions and exceptions from tariffs on Korea are needed," Choi said.

—IANS

Reader Comments

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James K.
Finally some structure to these trade talks! The "July package" approach sounds much better than the previous disorganized negotiations. Hope this leads to fair outcomes for both countries. 🤞
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Sarah L.
As someone who works in auto manufacturing, these tariffs have been really stressful. Glad to see both sides are taking a more measured approach now. The 25% duties would hurt so many jobs on both sides.
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Michael P.
While I appreciate the diplomatic efforts, I'm concerned about the rushed timeline. Economic security and currency policies are complex - 3 months might not be enough for thorough negotiations. Hope they don't rush into a bad deal.
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Eunice R.
The "calm, orderly consultations" part is key! Trade wars help no one. Korea and US have been strong allies for decades - we should be working together, not taxing each other's products. 🙏
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David T.
Interesting that they're including investment cooperation in the talks. Could open up new opportunities for businesses in both countries if handled right. Fingers crossed!

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Tags:
US-Korea Trade Talks Donald Trump Tariff Negotiations Economic Cooperation Choi Sang-mok Scott Bessent