Korea races to seal tariff deal in final US talks

Korea Herald

4 days ago

South Korea's Deputy Prime Minister and Finance Minister Koo Yun-cheol held two-hour trade talks with US Commerce Secretary Howard Lutnick Tuesday in Washington, as part of last-ditch efforts to finalize a tariff agreement before the imminent deadline.
The meeting began at 3 p.m. at the US Department of Commerce — just three hours after Koo arrived in Washington. Korea's Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo also joined the meeting, according to Korea's Industry Ministry.
Koo is also scheduled to meet US Treasury Secretary Scott Bessent on Thursday, in what is expected to be the final round of negotiations before US President Donald Trump's tariff-pause deadline set for Friday.
Upon arriving in Washington, Koo told reporters that he would "clearly explain Korea-US economic cooperation projects, particularly in sectors such as shipbuilding, which are of strong interest to the US."
"We will do our utmost to ensure that the agreement serves the mutual benefit of both countries," Koo said.
Korea's top negotiators are focusing on reducing the proposed 25 percent "reciprocal" tariffs and lowering rates on key items such as automobiles and steel.
Japan and the EU have reached an agreement to cap tariffs, including on cars, at 15 percent, a figure that has effectively become the benchmark for Korea's negotiations. A deal concluded at a higher rate could significantly undermine the country's export competitiveness in the US market compared to the EU and Japan.
Top business leaders are also joining the government in Washington to support the trade negotiations. Samsung Electronics Chair Lee Jae-yong arrived in Washington, and Hyundai Motor Group Executive Chair Chung Euisun has also departed for Washington on Wednesday. Hanwha Group Vice Chair Kim Dong-kwan has already joined the delegation to discuss the government's proposed shipbuilding cooperation project with the US, known as "Make American Shipbuilding Great Again" or MASGA.
The US side is reportedly pressuring Korean trade officials to present their "best and final" offer. According to the Wall Street Journal, Lutnick told Industry Minister Kim and Trade Minister Yeo during their meeting in Scotland to "bring it all," adding that Trump still needed to be convinced as to why a new deal with Korea was necessary, given that he had already secured trade agreements with other major partners, including the EU, Japan and the United Kingdom.
South Korea is leveraging its shipbuilding expertise as a strategic asset and has proposed the MASGA project — a multibillion-dollar investment plan aimed at revitalizing the US shipbuilding industry.