South Korea minister says deadline tight to reach deal on US tariffs
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The South Korean delegation will visit the US next week for technical talks as part of tariff negotiations.
PHOTO: REUTERS
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SEOGWIPO, South Korea - South Korea’s minister of trade and industry Ahn Deuk-geun said on May 16 that Seoul would try to reach a deal with Washington on tariffs by the July deadline previously agreed, but warned that the target could be missed due to domestic politics.
The countries will hold technical consultations next week to proceed with tariff negotiations and expect to have another ministerial meeting in June, Mr Ahn said, after meeting with US Trade Representative Jamieson Greer.
Seoul and Washington had said they would aim to craft a trade package on tariffs and economic cooperation by July 8.
“We will do our best to meet the timeline, but we expect that it may be adjusted a little in case it is unavoidable,” he told reporters.
The meeting between Mr Ahn and Mr Greer was held on the sidelines of a two-day gathering of trade ministers from 21 member economies of the Asia-Pacific Economic Cooperation (Apec) grouping in South Korea's resort island of Jeju.
After US President Donald Trump slapped 25 per cent tariffs on South Korea
However, South Korea’s political turmoil in the wake of a shock martial law order raised questions over the progress of trade talks.
South Korea’s Prime Minister Han Duck-soo, who had been leading negotiations, resigned
Currently, South Korea’s interim leader is the education minister
Mr Ahn said his US counterparts fully understood the risk of delays due to the election, while reiterating South Korea’s call for a waiver from the tariffs.
The technical discussions next week are due to focus on balanced trade and non-tariff barriers among other issues, according to the trade ministry.
The package deal negotiated is expected to encompass four main areas: tariffs and non-tariff measures, economic security, investment cooperation, and currency policy.
While touting cooperation in shipbuilding as an important card for negotiations, South Korea has denied that defence costs for some 28,500 US troops stationed in the country will be included.
Mr Ahn said a request by Alphabet’s Google to the South Korean government on the transfer of local map data overseas could be part of the broad tariff negotiations.
US Commerce Secretary Howard Lutnick said he did not expect “fast deals” with the two Asian allies Japan and South Korea in an interview with Bloomberg News last week.
“Washington is prepared to move forward in the interim talks, given the range of interests that could be addressed in a potential negotiated agreement,” said Mr Jay Truesdale, a former US diplomat and CEO of TD International, a risk intelligence firm.
“The braking mechanism might be more on the South Korean side, given pre-election jockeying and the need for consultation between Korean business and political stakeholders,” Mr Truesdale said, noting Mr Trump’s desire for quick wins reflected in recent trade talks with Britain and China.
South Korea’s central bank said in April downside risks to 2025’s economic growth forecast of 1.5 per cent had increased significantly due to US tariffs. REUTERS
