South Korea to step up US trade talks before tariffs kick in on August 1
Trump informed Seoul and more than a dozen other trading partners of sharply higher tariffs in a wave of letters on Monday, posing the first major test for President Lee Jae Myung since he came into office barely a month ago.
Lee's office said US Secretary of State Marco Rubio had indicated the new deadline, which extends a previous July 9 date, meant there was still time to reach an agreement.
South Korea's Industry Ministry said Seoul would 'step up negotiations during the remaining period to reach a mutually beneficial result.'
'We also plan to use it as an opportunity to improve domestic systems and regulations to resolve the trade deficit that is a major interest of the United States,' it said in a statement.
South Korea earned a record surplus of $55.6 billion from trade with the U.S. in 2024, up 25% from 2023, led by rising car exports, according to Korea Customs Service data.
Trump said in the letter to Lee that 'our relationship has been, unfortunately, far from reciprocal,' inviting South Korea to present a proposal to open 'your heretofore closed trading markets' and eliminate tariff and non-tariff barriers.
He said in the letter that Washington would impose a 25% tariff on all South Korean products but an exemption would be granted to goods manufactured within the United States.
South Korea's effective tariff rates stand at near-zero under a free trade agreement first signed in 2007 then revised in 2018 under Trump's first term, according to economists.
Seoul's top trade envoy and presidential security adviser have travelled to the U.S. in recent days for trade and defence talks.
South Korea's public had already factored in Trump's style, allowing Lee some latitude to work out a deal as long as it did not put the country in a worse-off situation than Japan, Taiwan or China, political analyst Park Sang-byoung said.
'Play good defence but don't be a pushover, that's what South Koreans want from President Lee.'
Morgan Stanley economist Kathleen Oh said greater clarity on Trump's push for concessions on non-tariff barriers and industrial cooperation should give Seoul a better chance to strike a deal.
The benchmark KOSPI stock index rose as much as 1.6% in early trade on optimism there was time for South Korea to reach a deal.
National Security Advisor Wi Sung-lac met Rubio on Monday and agreed that a summit meeting between Lee and Trump would help advance cooperation, Lee's office said.
'There is still time until tariffs are implemented on August 1, so he hopes the two countries can communicate closely to reach an agreement before that,' the presidential office cited Rubio as saying.
South Korea was slow to negotiate for an exemption from Trump's tariffs, first agreeing to work out a package deal but holding 'technical discussions' before moving to high-level negotiations after Lee took office on June 4.
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This includes funds released for leatherback sea turtle; Nicobar megapode conservation; conservation plans for long-tailed macaque and coconut crab; and conservation of native flora and fauna, among other plans. • The bench granted time to the applicant's counsel to file a rejoinder to the environment ministry's additional affidavit and adjourned the matter. • The six-member NGT bench was hearing on-going matters filed by environmental activist and researcher Ashish Kothari on alleged environmental violations in the project. • The ministry's additional affidavit was filed in response to NGT's directions in March to place on record the follow-up actions and outcomes after the HPC revisited the project's statutory environmental clearance. Do You Know: • Great Nicobar is the southernmost and largest of the Nicobar Islands, a sparsely inhabited 910-sq-km patch of mainly tropical rainforest in southeastern Bay of Bengal. Indira Point on the island, India's southernmost point, is only 90 nautical miles (less than 170 km) from Sabang at the northern tip of Sumatra, the largest island of the Indonesian archipelago. • Great Nicobar has two national parks, a biosphere reserve, small populations of the Shompen and Nicobarese tribal peoples, and a few thousand non-tribal settlers. • The Andaman and Nicobar Islands are a cluster of 836 islands, split into two groups — the Andaman Islands to the north and the Nicobar Islands to the south — by the 150-km wide Ten Degree Channel. President Droupadi Murmu visited the archipelago in February this year, and interacted with some of its indigenous inhabitants. • The mega infrastructure project — which is being implemented by the Andaman and Nicobar Islands Integrated Development Corporation (ANIIDCO) — is proposed to include an International Container Transhipment Terminal (ICTT), a greenfield international airport with a peak hour capacity to handle 4,000 passengers, a township, and a gas and solar based power plant spread across 16,610 hectares. • The HPC was formed in April 2023 on the orders of the NGT to address 'unanswered deficiencies' regarding the impact of the mega project involving a port and airport pertaining to coral conservation, location of the port in a prohibited area , and on limited baseline data collection. The NGT had not interfered with the environmental and forest clearances granted for the project. • The HPC had concluded that the project's environmental clearance and coastal regulation zone clearance adhered to the instant statutory provisions. It had said that no part of the project fell in out of bounds coastally sensitive areas, while regarding corals, it had said citing the Zoological Survey of India that 16,510 coral colonies close to the project needed to translocated, as per an affidavit filed by the environment ministry last year. • After preparing the report, the HPC forwarded it to the Andaman and Nicobar Island administration, which was directed to take appropriate action regarding the conclusions and recommendations. 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Key Points to Ponder: • What is the PARAKH Rashtriya Sarvekshan? • How is this year's survey different from previous years? • What did current NAS find? • What are the objectives and significance of PARAKH (Performance Assessment, Review, and Analysis of Knowledge for Holistic Development)? • What is the role of the National Achievement Survey (NAS) in identifying learning gaps in the Indian school education system? • How can PARAKH contribute towards improving accountability and outcome-based education in Indian schools? • Discuss the significance of foundational literacy and numeracy in shaping the long-term educational and socio-economic outcomes of children. • What are the long-term implications of low foundational skills in early education on India's demographic dividend? 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Do You Know: • According to its findings, Class 3 students recorded an average national score of 64% in language in 2024 — a two-percentage-point increase from 62% in 2021, but lower than the 2017 score of 66.7%. Similarly, in Maths, the national average score in 2024 was 60% — above the 57% recorded in 2021, but below 63% scored in 2017. • In terms of the language competencies they were assessed on, Class 3 students scored the lowest (60%) in reading short stories and comprehending their meaning, while they fared best (67%) in knowing and using words to carry out day-to-day interactions. • In Maths, Class 3 students fared poorly in geometric shapes and simple money transactions, scoring an average of 50% in both. They performed best (69%) in identifying simple patterns, shapes and numbers. • In Classes 6 and 9, the national average score is less than 50% in all subjects they were assessed in, except for language. 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Key Points to Ponder: • What is trade union? • Emergence and growth of Trade Unions-what you know about the same? • What are the Four Labour Codes? • What is Pressure Group? • What are the techniques used by pressure groups? • Pressure Groups in India and trade unions-connect the dots • What are the core grievances of trade unions in calling for the 09 July Bharat Bandh? • How can the government address demands of trade unions through inclusive policy-making? • Know the role of trade unions in shaping labour laws and reforms in India post-economic liberalization. Key Takeaways: • The forum on Monday said preparations for the bandh have been taken up in earnest by unions in all sectors of formal and informal/unorganised economy. • 'More than 25 crore workers are expected to take part in the strike. Farmers and rural workers will also join the protest across the country,' said Amarjeet Kaur from All India Trade Union Congress (AITUC). • Apart from AITUC, Indian National Trade Union Congress (INTUC), HMS, Centre of Indian Trade Unions (CITU), All India United Trade Union Centre (AIUTUC), Trade Union Coordination Centre (TUCC), Self Employed Women's Association (SEWA), All India Central Council of Trade Unions (AICCTU), Labour Progressive Federation (LPF) and United Trade Union Congress (UTUC) are part of the forum. Do You Know: • It alleged that the government has not been conducting the annual labour conference for the last 10 years and continues to take decisions in contravention to the interest of labour force, attempting to impose the four new labour codes to weaken collective bargaining, to cripple union activities and to favour employers in the name of 'ease of doing business'. • The forum also alleged that the economic policies are resulting in increased unemployment, rising prices of essentials, decrease in wages, cut in social sector spending in education, health, basic civic amenities, and all these are leading to more inequalities and miseries for poor, people of lower income group as well as the middle class. • Trade unions have been fighting against 'privatisation of public sector enterprises and public services, policies of outsourcing, contractorization and casualisation of workforce', it said. Other Important Articles Covering the same topic: 📍Bharat Bandh: Why Centre must listen to the concerns of trade unions Previous year UPSC Mains Question Covering similar theme: 📍Since the decade of the 1920s, the national movement acquired various ideological strands and thereby expanded its social base. Discuss. (2020) EXPLAINED Law on phone-tapping, and two HC rulings Syllabus: Preliminary Examination: Indian Polity and Governance Main Examination: General Studies II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. What's the ongoing story: Both the Madras and Delhi High Court cases involved 'preventing incitement to the commission of an offence', which is one of the valid grounds in law for authorising phone tapping. Key Points to Ponder: • How are phones tapped in India? • Who can tap phones? • What laws govern this? • Who authorises phone tapping? • Indian Telegraph Act, 1885-Historical Background and Present Relevance • Reforms needed or Revoking Indian Telegraph Act 1885? • Phone Tapping and Indian Telegraph Act, 1885 • Legality of Phone Tapping and Article 21 of the Indian Constitution • Authenticity of An Intercepted Conversation as an Evidence-know in detail Key Takeaways: • Both the Madras and Delhi High Court cases involved 'preventing incitement to the commission of an offence', which is one of the valid grounds in law for authorising phone tapping. • Both courts separately examined the nature of economic offences to determine if they could be deemed as 'public emergency' or 'public safety.' While the Delhi High Court upheld the interception order, the Madras High Court quashed it. • DELHI HC: On June 26, the Delhi High Court rejected the plea of an accused who challenged a trial court's order accepting evidence gathered by the Central Bureau of Investigation (CBI) through phone-tapping. • Madras HC: The Madras High Court on July 2 quashed an interception order issued by the MHA in 2011 for intercepting the phone of an accused in a bribery case. The accused was allegedly attempting to pay a bribe of Rs 50 lakh to a senior Income Tax officer to help the accused hide undisclosed taxable income. Do You Know: • The government's powers to intercept communication is laid down in and circumscribed by three pieces of legislation. —The Indian Post Office Act, 1898 allows for the interception of communication through post; —The Indian Telegraph Act, 1885 is used for tapping voice calls; and —The Information Technology Act, 2000 governs the interception of WhatsApp messages, emails, etc. • The 140-year-old Telegraph Act was originally meant for intercepting telegrams, but over the years it has been expanded to include telephonic conversations. Section 5(2) of the Act states that both state and central governments can, 'on the occurrence of any public emergency, or in the interest of the public safety', authorise interception. • Given that the right to free speech and the right to privacy are fundamental rights, any encroachment on these rights through surveillance is only permissible on narrow constitutional grounds. • These grounds — the interest of the sovereignty, and integrity of India; the security of the state; friendly relations with foreign states; public order; or preventing incitement to the commission of an offence — are enumerated as 'reasonable restrictions' under Article 19(2) of the Constitution. • Section 5(2) of the Act also mentions these grounds for authorising interception. For actions to be deemed a threat to 'public emergency, or in the interest of the public safety' and allow for interception, they have to necessarily fall into one of the reasonable restrictions. Other Important Articles Covering the same topic: 📍Explained: The laws for surveillance in India, and concerns over privacy For any queries and feedback, contact Subscribe to our UPSC newsletter. Stay updated with the latest UPSC articles by joining our Telegram channel – IndianExpress UPSC Hub, and follow us on Instagram and X. Priya Kumari Shukla is a Senior Copy Editor in the Indian Express (digital). She contributes to the UPSC Section of Indian Express (digital) and started niche initiatives such as UPSC Key, UPSC Ethics Simplified, and The 360° UPSC Debate. The UPSC Key aims to assist students and aspirants in their preparation for the Civil Services and other competitive examinations. It provides valuable guidance on effective strategies for reading and comprehending newspaper content. The 360° UPSC Debate tackles a topic from all perspectives after sorting through various publications. The chosen framework for the discussion is structured in a manner that encompasses both the arguments in favour and against the topic, ensuring comprehensive coverage of many perspectives. Prior to her involvement with the Indian Express, she had affiliations with a non-governmental organisation (NGO) as well as several coaching and edutech enterprises. In her prior professional experience, she was responsible for creating and refining material in various domains, including article composition and voiceover video production. She has written in-house books on many subjects, including modern India, ancient Indian history, internal security, international relations, and the Indian economy. She has more than eight years of expertise in the field of content writing. Priya holds a Master's degree in Electronic Science from the University of Pune as well as an Executive Programme in Public Policy and Management (EPPPM) from the esteemed Indian Institute of Management Calcutta, widely recognised as one of the most prestigious business schools in India. She is also an alumni of Jamia Milia Islamia University Residential Coaching Academy (RCA). Priya has made diligent efforts to engage in research endeavours, acquiring the necessary skills to effectively examine and synthesise facts and empirical evidence prior to presenting their perspective. Priya demonstrates a strong passion for reading, particularly in the genres of classical Hindi, English, Maithili, and Marathi novels and novellas. Additionally, she possessed the distinction of being a cricket player at the national level. Qualification, Degrees / other achievements: Master's degree in Electronic Science from University of Pune and Executive Programme in Public Policy and Management (EPPPM) from Indian Institute of Management Calcutta ... Read More
