On Monday, July 14th, South Korea’s top trade representative, Ryu Han-gu, announced progress in negotiations with the United States, stating that South Korea is expected to reach a framework agreement with the U.S. by August 1st, and hinted at possible concessions in agricultural imports. President Trump of the United States also confirmed that South Korea is actively working towards reaching an agreement.
Ryu Han-gu concluded discussions with senior U.S. officials last week and upon returning home, he stated in an interview that South Korea is trying to avoid a 25% tariff imposed by the U.S. on key export industries such as automobiles and steel. He mentioned that this tariff would harm industrial cooperation between the two countries.
In the negotiations, Ryu Han-gu stated that significant progress has been made in cooperation on key industries, but the U.S. still needs to lower specific tariffs on South Korean automobiles and steel industry. He emphasized that these tariffs are “unfair” and seriously undermine bilateral cooperation.
“I believe that in U.S. tariff negotiations, there is hope to reach a preliminary agreement (between the two countries), and then further negotiations will take place. It is unrealistic to expect to finalize all details and sign a perfect treaty within 20 days,” said Ryu Han-gu.
Due to President Lee Jae-myung taking office in June, bilateral negotiations started relatively late. South Korean senior officials traveled to Washington immediately after Trump’s tariff statement to negotiate reducing import tariffs on steel and automobiles.
Ryu Han-gu mentioned that South Korea may open up some agricultural or livestock markets in the negotiations, but still aims to protect its sensitive industries and will not fully open up.
“We need to make strategic decisions in the agricultural and livestock sectors,” Ryu Han-gu anticipated that some “sensitive areas” will continue to be protected, but certain industry projects may be included in the trade agreement framework for negotiation.
President Trump stated on Sunday in Maryland that “South Korea wants to reach an agreement now,” but he did not specify the exact conditions of the agreement, nor did he predict when the U.S.-South Korea negotiations would be completed.
As Trump announced a 25% tariff on South Korean products, South Korea is intensifying negotiations with the U.S., striving to reach a preliminary agreement before the August 1 deadline. South Korean officials stated in early July that the U.S. is willing to consider exempting tariffs on certain industries, but South Korea needs to propose a specific plan to reduce the trade deficit.
In 2024, South Korea’s trade surplus with the U.S. reached a record high of $55.6 billion, mainly driven by the growth in automobile exports. According to the U.S.-Korea Free Trade Agreement, South Korea’s actual tariff rate on U.S. imports is close to zero.