South Korea's President Lee says U.S. tariff negotiations 'not very easy'

UPI

7 hours ago

SEOUL, July 3 (UPI) -- South Korean President Lee Jae Myung said Thursday that his government is working hard to strike a trade deal with the United States on impending tariffs but expressed doubt as to whether talks will be concluded before next week's deadline.
"It is clear that tariff negotiations are not very easy," Lee said at a press conference marking his first 30 days in office.
"We need to create a mutually beneficial result that is helpful to both parties, but it has not yet been clearly defined what the two parties want," he said.
South Korea is facing 25% tariffs threatened by U.S. President Donald Trump as part of his sweeping package of "Liberation Day" trade measures. Trump announced the tariffs in April but quickly put their implementation on hold for 90 days -- a deadline that is approaching on July 8.
Tariffs on steel and automobiles, two key industries in South Korea, are already in place.
South Korea is seeking an extension on the 90-day pause and sent a delegation to Washington last week to ask for an exemption from all U.S. reciprocal and product-specific tariffs.
Lee said Thursday that it was "difficult to confirm whether we can conclude tariff negotiations by July 8."
"But I can tell you that we are continuing to work hard," he said. "We are also exploring many topics for our discussion from various perspectives. I can only say that we will do our best."
Lee took office last month in a snap election precipitated by former President Yoon Suk Yeol's botched martial law attempt in December. In his first press conference as president, Lee focused his remarks on restoring economic growth and stabilizing people's livelihoods.
"The top priority is to relieve the suffering of the people and create a country that grows and leaps forward again," he said.
Domestic political turmoil and an uncertain trade environment have shaken the export-dependent Asian powerhouse, which saw its economy unexpectedly shrink in the first quarter of the year.
In late May, the Bank of Korea lowered its GDP growth forecast for 2025 from 1.5% in February to 0.8%, citing a slow recovery in domestic demand and the expected impact of U.S. tariffs. At the same time, the central bank cut its benchmark interest rate for the fourth time since October, lowering it by a quarter percentage point to 2.5%.
Since taking office, President Lee has pledged to boost the economy through fiscal stimulus and other policy measures.
Last month, the government announced a second supplementary budget worth more than $14.7 billion, which will include cash handouts, debt relief measures and investments in sectors such as construction and artificial intelligence. The move follows a $10.1 billion package that was previously approved by parliament.
Lee also vowed on Thursday to work toward improving relations with North Korea on a tense Korean Peninsula.
"We will thoroughly prepare for provocations, while resuming severed communications between the South and the North and opening the way for peace and coexistence on the Korean Peninsula through dialogue and cooperation," he said.
The president pointed to his recent order for the suspension of propaganda loudspeaker broadcasts across the DMZ to North Korea as a positive step. Pyongyang responded by stopping its own loudspeaker blasts of bizarre noises such as metallic screeching and animal sounds.
"As North Korea has recently responded to the government's preemptive suspension of broadcasts to the North, I believe that a virtuous cycle of peace is possible," Lee said.