Can South Korea Secure an Exemption from All US Tariffs?
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Synopsis
South Korea is actively seeking an exemption from US tariffs in ongoing negotiations with the United States. Industry Minister Ahn Duk-geun's discussions with US Trade Representative Jamieson Greer highlight the urgency and strategic importance of these talks, as Seoul aims for a favorable outcome amid domestic political challenges.
Key Takeaways
- South Korea is pursuing an exemption from all US tariffs.
- Discussions are ongoing between Industry Minister Ahn Duk-geun and US Trade Representative Jamieson Greer.
- The focus is on key areas such as trade imbalances and economic security.
- Domestic political challenges may affect negotiation timelines.
- A comprehensive deal is targeted by July 8.
Seoul, May 16 (NationPress) Once again, South Korea has requested the United States to grant exemption from all tariffs, as stated by Seoul's Industry Minister Ahn Duk-geun on Friday. This request follows a meeting with US Trade Representative Jamieson Greer during the Asia-Pacific Economic Cooperation (APEC) trade ministers' gathering.
During their discussions, both parties agreed to conduct a second round of technical talks in Washington next week, focusing on six key trade-related areas: trade imbalances, non-tariff measures, economic security, country of origin of products, and commercial considerations.
Following next week’s discussions, additional high-level dialogues are anticipated in mid-June, as reported by Yonhap news agency.
The recent high-level meeting took place on South Korea's southern island of Jeju, occurring just three weeks after their previous meeting in Washington, where they committed to pursuing a comprehensive deal on US tariffs and economic cooperation by July 8.
Greer attended the APEC Ministers Responsible for Trade meeting, which concluded its two-day session on Friday.
Last month, Seoul and Washington agreed to concentrate their negotiations on four main areas: tariff and non-tariff measures, economic security, investment cooperation, and currency policies.
South Korea has been advocating for a reduction or exemption from US tariffs, including a 25 percent reciprocal duty, which has been suspended for 90 days.
“During Friday's meeting, we emphasized that South Korea has a bilateral free trade agreement (FTA) with the U.S., setting us apart from other nations, and that we have significantly expanded trade and investment under this FTA,” Ahn remarked at a press briefing.
He further explained that US tariffs on automobile and steel imports considerably affect trade relations between the two nations.
Ahn highlighted that South Korea's potential as a key cooperation partner to the U.S. in sectors such as semiconductors, energy, and advanced technologies is superior to that of other countries.
“We are striving for a more constructive and future-focused relationship with Washington, aiming to establish a stable trade environment and enhance industrial cooperation, rather than merely focusing on reducing South Korea's trade surplus with the U.S. for tariff relief,” he stated.
Concerning the current leadership void in South Korea, Ahn affirmed that Seoul is “doing its utmost” to meet the July 8 deadline, while also acknowledging the potential for delays due to domestic political circumstances.
South Korea is set to conduct a presidential election on June 3 following the impeachment of former President Yoon Suk Yeol due to a failed martial law attempt.
“The U.S. understands that we are not trying to unnecessarily delay our negotiations by citing the domestic political situation as an excuse,” he added.
Regarding next week’s technical discussions, Ahn mentioned that the U.S. has shown significant interest in digital trade matters, including issues related to Google Maps and cloud computing.
Point of View
South Korea's push for tariff exemption from the United States underscores a critical juncture in economic relations. The nation is strategically leveraging its bilateral trade agreement to enhance cooperation, despite domestic political challenges. This approach may not only stabilize trade but also foster deeper industrial partnerships.
NationPress
16/06/2025
Frequently Asked Questions
What is the purpose of South Korea's request for tariff exemption?
South Korea aims to alleviate the economic impact of US tariffs, particularly on key sectors like automobiles and steel, to enhance trade relations and secure a more favorable economic environment.
When is the next round of discussions scheduled?
The next round of technical discussions is set for next week in Washington.
What are the key areas of focus in the negotiations?
The discussions will focus on trade imbalances, non-tariff measures, economic security, country of origin of products, and commercial considerations.
How does South Korea's free trade agreement with the US impact these negotiations?
The bilateral free trade agreement allows South Korea to emphasize its unique relationship with the US, which can provide leverage in negotiations for tariff exemptions.
What potential challenges does South Korea face in these negotiations?
Domestic political issues, including an upcoming presidential election, may impact the timeline and strategy of the negotiations, potentially causing delays.
