There was “considerable progress” in the discussion with US officials over cooperation in key industrial sectors as part of the trade talks, Yeo was cited as saying, but Washington needed to cut industry-specific tariffs on autos and steel.
On Sunday in Maryland, US President Donald Trump told reporters: “South Korea wants to make a deal right now.” He did not elaborate on what would cement a deal or speculate on a time frame for getting negotiations done.
South Korea is in a race to reach a compromise trade pact in the hope of avoiding a 25 per cent tariff slapped on its exports by Trump that is set to kick in on Aug 1, after a late start to negotiations with a new president voted in last month.
President Lee Jae-myung took office on Jun 4 following the ouster of his predecessor Yoon Suk Yeol over a failed martial law attempt. The six months of political turmoil forced Seoul to initially focus on technical discussions over Trump’s demands.
Top South Korean officials held meetings in Washington after Trump’s announcement, including to negotiate cuts or exemptions from import duties on steel and autos.
A senior South Korean trade official said earlier this month Washington had shown a willingness to consider exemptions on sectoral tariffs, as it had when agreeing a deal with Britain, if South Korea proposed a clear offer to reduce trade deficits.
South Korea earned a record US$55.6 billion trade surplus with the US in 2024, up 25 per cent from 2023, led by rising car exports, according to Korea Customs Service data.
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.
