South Korea races to avert tariffs with US trade deal
South Korea is relying on cooperation with the White House to reach an agreement on tariffs. The fourth-largest economy in Asia aims to reach an agreement with Donald Trump by 8th July, according to CNBC. These agreements are the outcome of recent bilateral talks in Washington.
South Korea is hoping for "calm" and "orderly" trade discussions with the United States. One of the largest Asian economies seeks to avoid tariffs and aims to reach an agreement by 8th July. The following day marks the expiration of the 90-day suspension of tariffs imposed by Donald Trump.
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 agreed that further discussions between the partners will address tariff and non-tariff measures, economic security, investment cooperation, and monetary policy. Choi reportedly emphasised that South Korea is a "reliable partner."
Additionally, Ahn Duk Geun proposed that South Korea could assist Americans in rebuilding their shipbuilding industry, aiming for balanced trade between the countries. Strengthening 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.," highlights CNBC.
South Korea's automotive industry might be significantly affected by Donald Trump's tariffs. Hyundai and Kia vehicles are 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 announcement of the tariffs, the Hyundai corporation announced a record investment of $21 (£16) billion in the United States. A key part of this is the construction of a steel mill in Louisiana costing $5.8 (£4.4) billion, which will employ over 1,400 workers.
The key element of the negotiations will be the elections in South Korea, scheduled for 3rd June. On this day, Koreans will elect a new president. It is worth recalling that the Constitutional Court removed former President Yoon Suk Yeol from office after he announced the introduction of martial law on 3rd December. Yoon Suk Yeol retracted this decision after six hours, following pressure from parliament.
