South Korea seeks US trade deadline extension as tariffs loom
South Korean Trade Minister Yeo Han-koo held talks with US Trade Representative Jamieson Greer on Jul 5 in Washington, where he proposed manufacturing partnerships and called for the elimination or reduction of tariffs on products such as automobiles and steel, Seoul's industry ministry said in a statement on Sunday (Jul 6).
The meeting came just days before a deadline to reinstate higher US levies that were halted in April. President Donald Trump has said that Washington would send out letters to trading partners setting unilateral tariff rates taking effect on Aug 1.
South Korea is a key US ally and major manufacturing hub for cars, semiconductors and batteries. If the 25 per cent across-the-board levies are imposed, that would further undercut an economy already hit by sluggish domestic consumption. The central bank in May slashed its forecast for this year's gross domestic product growth to 0.8 per cent from 1.5 per cent.
In a last-minute bid to avoid the tariffs from kicking in, Yeo presented a vision for a 'mutually beneficial' manufacturing cooperation framework to further strengthen the two countries' industrial supply chains, while stressing that any final agreement must include ending or limiting tariffs on automobiles and steel, among other products.
'Both sides agreed that they have been conducting negotiations in good faith for a month since the launch of the new South Korean administration and that it is necessary to further narrow their differences,' the statement said, adding that the officials also discussed extending the deadline for additional talks.
It was Yeo's second trip to the US in just about a week and a sign that Seoul is ratcheting up efforts to make up for lost time in trade talks after President Lee Jae-myung won a snap election last month, taking over from the ousted Yoon Suk Yeol. Yoon's brief martial law decree at the end of last year triggered the country's worst political turmoil in decades and resulted in a leadership vacuum.
Lee's national security adviser, Wi Sung-lac, left for Washington on Sunday to meet Secretary of State Marco Rubio, who also serves as acting national security adviser. Speaking with reporters before his departure, Wi said he needed to increase his involvement as the negotiations are in a 'critical phase.' He said he will seek to arrange a first summit between Lee and Trump as well as discussing security and other bilateral issues during his trip. BLOOMBERG
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