South Korea's finance minister, trade envoy to hold tariff talks with US counterparts
SEOUL : South Korea's new finance minister and the country's top trade envoy will meet their US counterparts in Washington on Friday for talks on US tariffs, finance minister Koo Yun-cheol said today.
The country's foreign and industry ministers will also visit the US for trade discussions as early as this week, Koo told reporters after a meeting of economic ministers.
Koo took office yesterday.
The four officials complete a new cabinet team under President Lee Jae Myung, who was sworn in on June 4 after winning a snap election called after his predecessor's ouster for trying to declare martial law.
The political turmoil that ensued delayed South Korea's response to US President Donald Trump's punishing tariff regime imposed on dozens of trade partners, including key industrial powerhouses that are also security allies.
'Koo and trade minister Yeo Han-koo will hold talks with US treasury secretary Scott Bessent and US trade representative Jamieson Greer on Friday at the request of the US officials,' the finance minister said.
'We've had discussions from the perspective of national interest and pragmatism and we'll do our best to prepare a meticulous strategy until we're leaving,' Koo said, declining to say whether Seoul was hoping to push back the Aug 1 deadline before reciprocal tariffs set by Trump are due to come in.
Yeo said today that he would seek to base the talks around forming a manufacturing partnership with the US.
Yesterday, South Korea's new industry minister Kim Jung-kwan said tariff talks were in a critical phase that could result in a range of possible outcomes and pledged an all-out effort to wrap up negotiations by Aug 1.
Trump has vowed to slap tariffs on a range of countries including South Korea to reduce what he called unfair trade imbalances.
On Saturday, Japan's top tariff negotiator, Ryosei Akazawa, said he planned to visit Washington this week to hold further ministerial-level talks, as Tokyo hopes to clinch a deal by its Aug 1 deadline.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
6 minutes ago
- Malay Mail
World economies reel from Trump's tariffs punch
WASHINGTON, Aug 2 — Global markets reeled yesterday after President Donald Trump's tariffs barrage against nearly all US trading partners as governments looked down the barrel of a seven-day deadline before higher duties take effect. Trump announced late Thursday that dozens of economies, including the European Union, will face new tariff rates of between 10 and 41 per cent. However, implementation will be on August 7 rather than Friday as previously announced, the White House said. This gives governments a window to rush to strike deals with Washington setting more favorable conditions. Neighbouring Canada, one of the biggest US trade partners, was hit with 35 per cent levies, up from 25 per cent, effective yesterday—but with wide-ranging, current exemptions remaining in place. The tariffs are a demonstration of raw economic power that Trump sees putting US exporters in a stronger position, while encouraging domestic manufacturing by keeping out foreign imports. But the muscular approach has raised fears of inflation and other economic fallout in the world's biggest economy. Stock markets in Hong Kong, London and New York slumped as they digested the turmoil, while weak US employment data added to worries. Trump's actions come as debate rages over how best to steer the US economy, with the Federal Reserve this week deciding to keep interest rates unchanged, despite massive political pressure from the White House to cut. Data Friday showed US job growth missing expectations for July, while unemployment ticked up to 4.2 per cent from 4.1 percent. On Wall Street, the S&P 500 dropped 1.6 percent, while the Nasdaq tumbled 2.2 per cent. Political goals Trump raised duties on around 70 economies, from a current 10 per cent level imposed in April when he unleashed 'reciprocal' tariffs citing unfair trade practices. The new, steeper levels listed in an executive order vary by trading partner. Any goods 'transshipped' through other jurisdictions to avoid US duties would be hit with an additional 40 per cent tariff, the order said. But Trump's duties also have a distinctly political flavour, with the president using separate tariffs to pressure Brazil to drop the trial of his far-right ally, former president Jair Bolsonaro. He also warned of trade consequences for Canada, which faces a different set of duties, after Prime Minister Mark Carney announced plans to recognise a Palestinian state at the UN General Assembly in September. In targeting Canada, the White House cited its failure to 'cooperate in curbing the ongoing flood of fentanyl and other illicit drugs'—although Canada is not a major source of illegal narcotics. By contrast, Trump gave more time to Mexico, delaying for 90 days a threat to increase its tariffs from 25 percent to 30 percent. But exemptions remain for a wide range of Canadian and Mexican goods entering the United States under an existing North American trade pact. Carney said his government was 'disappointed' with the latest rates hike but noted that with exclusions the US average tariff on Canadian goods remains one of the lowest among US trading partners. 'Tears up' rule book With questions hanging over the effectiveness of bilateral trade deals struck—including with the EU and Japan—the outcome of Trump's overall plan remains uncertain. 'No doubt about it—the executive order and related agreements concluded over the past few months tears up the trade rule book that has governed international trade since World War II,' said Wendy Cutler, senior vice president of the Asia Society Policy Institute. Yesterday, Trump said he would consider distributing a tariff 'dividend' to Americans. Notably excluded from yesterday's drama was China, which is in the midst of negotiations with the United States. Washington and Beijing at one point brought tit-for-tat tariffs to triple-digit levels, but have agreed to temporarily lower these duties and are working to extend their truce. Those who managed to strike deals with Washington to avert steeper threatened levies included Vietnam, Japan, Indonesia, the Philippines, South Korea and the European Union. Among other tariff levels adjusted in Trump's latest order, Switzerland now faces a higher 39 per cent duty. — AFP
Free Malaysia Today
39 minutes ago
- Free Malaysia Today
Go on the offensive ahead of next general election, PKR told
Former PKR deputy president Rafizi Ramli said the party must showcase what the government has achieved in a way that can't be denied. PETALING JAYA : PKR must adopt a more aggressive political strategy if the party hopes to secure victory in the next general election, says its former deputy president Rafizi Ramli. He said the party's approach should be focused on two key aspects, that is, by aggressively highlighting the current government's tangible achievements, and openly exposing weaknesses or scandals involving opposition leaders. 'We have to showcase what the government has achieved in a way that can't be denied. At the same time, we must expose failures and scandals involving opposition figures,' the former economy minister said on his podcast last night. However, Rafizi claimed that such strategies are currently missing from the PKR leadership's approach. Pakatan Harapan (PH) secured a total of 82 seats at the last general election in 2022 (GE15), with PKR contributing 31 of those seats. While this marked a decline of 16 seats from the 47‑seat count in GE14 in 2018, PKR remained the second-largest party within the coalition behind DAP (40 seats). In May, PKR president Anwar Ibrahim called for all PKR leaders and members to strengthen the party in preparation for the next general election (GE16), which must be held by early 2028. Anwar, who is also the prime minister, added that PKR must reject the politics of hatred, slander and racism, which will only divide the people and weaken the country.
Focus Malaysia
an hour ago
- Focus Malaysia
Ramasamy: US tariff reductions or strategic retreat? Malaysia's Boeing deal raises alarming questions
TRADE, Investment and Industry Minister Tengku Datuk Seri Zafrul Aziz proudly claimed that Malaysia did not cross any 'red lines' in negotiating the recent reduction of US reciprocal tariffs from 25% to 19%. Together with Prime Minister Datuk Seri Anwar Ibrahim, he painted a picture of tough, principled bargaining that delivered results without compromising national interests. However, this narrative quickly unravelled. In the same breath, Tengku Zafrul admitted that one of the conditions for the tariff reduction was Malaysia's agreement to purchase 30 Boeing planes valued at US$9.5 bil (RM40.63 bil) for the Malaysian Aviation Group (MAG). The order – placed as early as March this year – includes 18 Boeing 737-8 and 12 Boeing 737-10 planes. It is not only Malaysia that has been pushed into such purchases. Other countries that received tariff relief from the US have reportedly made similar orders. Still, it is deeply troubling that Malaysia was effectively coerced into buying Boeing planes just to satisfy Washington's terms. 'No such thing as free lunch' Aircraft procurement should be driven by national interest and value for money. Whether from Boeing in the US or Airbus in France, Malaysia ought to have pursued an open tender process to ensure competitiveness and transparency. Instead, it appears that the deal was dictated more by geopolitics than by sound economics. This situation raises a larger question: what other concessions did Malaysia make in return for the tariff reduction? Anwar's government has presented the tariff cut as a diplomatic victory. But the reality seems to be far more complex – and costly. There is no such thing as a free lunch with the US, especially under President Donald Trump's aggressive 'America First' trade policy. For Malaysia, the price of lower tariffs seems to have been the erosion of sovereign decision-making. This kind of transactional diplomacy reflects a new form of economic imperialism – one where tariffs are wielded as instruments of coercion to secure purchases of American products. In this light, Tengku Zafrul's claim that Malaysia did not cross any red lines rings hollow. Forcing a sovereign country to buy specific goods as a pre-condition for trade concessions is, by any standard, a breach of those red lines. It is time for both Anwar and Tengku Zafrul to come clean. Malaysians deserve to know the full extent of the concessions made in this tariff deal. Transparency is essential if public confidence in the government's foreign and trade policy is to be maintained. The issue here is not merely about trade or tariffs – it is about whether countries like Malaysia can truly chart an independent path in global economic affairs. Or are we destined to dance to the tune of powerful nations under the guise of diplomacy? As a Tamil proverb puts it: there must be a reason why the rat runs naked. The question is whether Malaysia has been exposed naked in the tariff reduction deal with the US? – Aug 2, 2025 Former DAP stalwart and Penang chief minister II Prof Ramasamy Palanisamy is chairman of the United Rights of Malaysian Party (Urimai) interim council. The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia. Main image credit: Tengku Zafrul/Facebook
