On April 24, 2025 (local time), representatives from South Korea and the US met for their first high-level meeting since US President Donald Trump announced reciprocal tariffs on trade partners. From left to right: South Korean Trade Minister Ahn Duk-geun, Korean Finance Minister Choi Sang-mok, US Treasury Secretary Scott Bessent, and US Trade Representative Jamieson Greer. (courtesy of the Ministry of Economy and Finance)
Korea and the US have agreed to hold talks on eliminating reciprocal tariffs and item-specific duties, with July 8, the final day of the 90-day grace period, as the deadline, Korean government officials said. The discussions will cover four areas, including tariff and non-tariff measures. Issues such as renegotiating defense cost-sharing and assistance in pressuring China did not make it onto the list of issues up for discussion.
In a briefing held in the South Korean Embassy on the outcome of the high-level bilateral trade talks in Washington, DC, on Thursday, Minister of Economy and Finance Choi Sang-mok stated, “I believe we have reached a consensus on preparing a ‘July package’ deal for the purpose of eliminating the tariffs before July 8, the final day of the reciprocal tariff grace period.”
“Korea and the US have also agreed to hold discussions centered around four main areas, namely tariff and non-tariff measures, economic security, investment cooperation and currency policy,” he added. “We have established a framework for these talks by narrowing the subjects to be discussed and reaching a consensus on the time frame through the two-plus-two meeting as a starting point.”
At the ROK Embassy in Washington, DC, South Korean Finance Minister Choi Sang-mok briefs reporters on the senior talks with US counterparts on trade and commerce on April 24, 2025. (pool photo)
Trade Minister Ahn Duk-geun revealed that he held a separate meeting with US Trade Representative Jamieson Greer following the talks, where he reiterated South Korea’s request for the removal of reciprocal tariffs and other tariffs.
Further high-level discussions are scheduled between Ahn and Greer, who is traveling to South Korea for the two-day Asia-Pacific Economic Cooperation trade ministers’ meeting starting on May 15.
Regarding exchange rate policy, Choi said, “The finance ministries of the two countries will hold separate consultations on that issue, and we expect working-level talks to start soon.”
The automobile industry and shipbuilding fields were major points of discussion during the talks. “We focused on explaining how the tariffs would affect our automobile industry, which will be hit the hardest and negatively influence our economy,” Choi said. Ahn noted that the US “seemed to deeply relate with our vision of cooperation in the shipbuilding industry.”
The US expressed a slightly different opinion on the “July package,” which stipulates the end of trade talks and resolution of the tariffs issue by July 8. Following the trade talks, Bessent told reporters at the White House, “We had a very successful bilateral meeting with the Republic of South Korea today. We may be moving faster than I thought, and we will be talking technical terms as early as next week as we reach that agreement on understanding as soon as next week.”
“So South Koreans came early, they came with their A game, and we will see if they follow through on that,” Bessent added, emphasizing the speed at which negotiations will be made.
“The US was completely on board with the ‘July package,’ which proposes that we pursue deals on four categories by July 8,” Choi insisted. When asked about Bessent’s use of the term “agreement on understanding,” Ahn replied, “The term is not one used in commerce. I’ve never heard it be used before. I believe that the phrase was used to explain that we have agreed to launch working-level talks from next week.”
By Kim Won-chul, Washington correspondent
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