Doha: South Korea and the United States have affirmed their commitment to reaching a tariff agreement before the August 1 deadline, as both nations seek to improve trade relations and avoid impending tariffs.
According to Qatar News Agency, South Korea's top trade negotiators, Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo, held a joint meeting with US Commerce Secretary Howard Lutnick in Washington. The discussions focused on enhancing trade relations and exploring a bilateral manufacturing partnership, as reported by the Ministry of Trade, Industry and Energy.
During the meeting, both parties agreed to work towards a "mutually beneficial" trade deal before the August 1 deadline. This deadline is significant as it marks the date when reciprocal tariffs, initially imposed by the Donald Trump administration, are set to take effect. An additional round of negotiations is planned to expedite the process.
The US president has indicated that South Korea will face a 25 percent reciprocal tariff unless an agreement is reached before the deadline.
In response, South Korean Industry Minister Kim Jung-kwan advocated for a reduction in the reciprocal tariff rate for South Korea, along with the reduction of sectoral tariffs on imported cars and steel products. He also proposed collaboration in strategic manufacturing sectors such as shipbuilding, semiconductors, and batteries.
Minister Kim emphasized the importance of ensuring South Korean companies are not disadvantaged compared to international competitors. "We will make every effort to ensure that our companies are not placed at a disadvantage compared to competitors from other countries," he stated in a press release. He further added that the trade delegation would utilize all resources to achieve the best possible outcome for the national interest by August 1.