South Korea seeks tariff truce as July deadline looms
South Korea is counting on cooperation with the White House to reach an agreement on tariffs. The fourth-largest economy in Asia aims to finalize an agreement with Donald Trump by July 8, reports CNBC. These discussions are a result of recent bilateral talks in Washington.
South Korea hopes for "calm" and "orderly" trade negotiations with the United States. It seeks to avoid tariffs and aims to reach an agreement by July 8. The following day, the 90-day suspension of tariffs imposed by Donald Trump is set to expire.
South Korean Finance Minister Choi Sang Mok and Minister of Trade, Industry, and Energy Ahn Duk Geun recently met in Washington with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer.
The officials concurred that further discussions between the partners will address tariff and non-tariff measures, economic security, investment cooperation, and monetary policy. Choi reportedly emphasized that South Korea is a "reliable partner."
Moreover, Ahn Duk Geun suggested that South Korea would assist Americans in rebuilding their shipbuilding industry, leading to balanced trade between the countries. Enhancing South Korea's energy security is also crucial.
Korean cars conquer the USA
"Though South Korea, like most other countries, has been temporarily spared the 'reciprocal' tariffs, the country still faces a 25% levy on steel and aluminum imports to the United States, as well as another 25% on automobile imports, which are some of the country’s largest exports to the U.S.," reports CNBC.
South Korea's automotive industry could be significantly impacted by Donald Trump's tariffs. Hyundai and Kia vehicles rank among the eight best-selling car brands in the USA. South Korea is also the fourth-largest steel exporter to the United States.
Following Trump's tariff announcement, the Hyundai corporation announced a record investment of $21 (CAD 29) billion in the United States. A key investment is the construction of a steel mill in Louisiana for $5.8 (CAD 8) billion, which will employ over 1,400 workers.
A crucial factor in the negotiations will be the elections in South Korea, scheduled for June 3. On this day, Koreans will elect a new president. It's worth noting that the Constitutional Court removed former President Yoon Suk Yeol from office because on December 3, he announced the introduction of martial law. Six hours later, Yoon Suk Yeol retracted this decision under pressure from parliament.
