South Korea presidential adviser, Rubio agree to intensify talks on trade, alliance, Seoul says
SEOUL - South Korea's presidential security adviser Wi Sung-lac and US Secretary of State Marco Rubio agreed that the countries should intensify talks to try to reach a trade deal before a new Aug 1 deadline, South Korea's presidential office said on July 8.
The office will hold a meeting in the afternoon with officials from the industry, foreign and finance ministries to discuss US President Donald Trump's decision to extend the deadline to impose reciprocal tariffs, it said.
Mr Wi and Mr Rubio also agreed to work closely to advance cooperation in shipbuilding and that an early summit meeting between the leaders of the two countries would help advance discussions on various issues, the presidential office also said.
Earlier on July 8 , South Korea said it would fix rules and regulations to address US demand to lower non-tariff barriers after President Trump sent a letter to the Asian ally with
a new August deadline to impose 25 per cent rates.
'We see this letter as a de facto extension of the grace period for imposing reciprocal tariffs until Aug 1,' South Korea's Industry Ministry said in a statement, vowing to accelerate negotiations to reach a mutually beneficial agreement.
The 25 per cent across-the-board tariff announced by Mr Trump on all shipments from South Korea is same with the level which was set to be implemented on July 9 barring a deal.
'Please understand that these tariffs are necessary to correct the many years of Korea's Tariff, and Non Tariff, Policies and Trade Barriers, causing these unsustainable Trade Deficits against the United States,' Mr Trump said in the letter posted on social media Truth Social.
South Korea's negotiations with the US have been hampered by six months of domestic turmoil following
former President Yoon Suk Yeol's attempt to impose martial law.
The administration of newly installed President Lee Jae Myung is now playing catch-up as multiple nations face US pressure to sign off on deals.
The letter was unveiled just as South Korea's top trade and security officials were in Washington in a last-minute bid to avert the punitive tariffs.
'We will use this opportunity to advance key industries through the manufacturing renaissance partnership between our two countries, while also enhancing domestic systems and regulations – areas of particular interest to the US in its efforts to reduce trade deficits,' the ministry said.
The US is South Korea's second-largest export destination after China, accounting for 18.7 per cent of outbound shipments worth US$127.8 billion (S$163.5 billion) in 2024 .
The Office of the US Trade Representative said the country ran a US$66 billion trade deficit with South Korea in 2024, its eighth-largest bilateral gap. That was bound to draw the attention of Mr Trump, who has framed persistent trade shortfalls as a national emergency.
Failure to secure a deal during the extended grace period is set to deepen the drag on a trade-dependent economy that shrank in the first quarter.
Exports remain vital to South Korea's economy, equivalent to more than 40 per cent of gross domestic product in 2024 . Its supplies of chips, smartphones, cars and batteries are also key elements for global supply chains. REUTERS, BLOOMBERG
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