US and South Korea close to signing trade deal
South Korean Finance Minister Choi Sang-mok (Photo: facebook.com)
The US and South Korea have moved closer to reaching a new trade memorandum of understanding that could ease tariff pressure and impact global markets, according to Bloomberg.
The publication notes that on Thursday, April 23, representatives of the two countries held successful bilateral talks and may agree on a new deal as early as next week.
"We had a very successful bilateral meeting. We may be moving faster than I thought, and we will be talking technical terms as early as next week as we reach an agreement on understanding as soon as next week," said US Treasury Secretary Scott Bessent during a press briefing at the White House.
Details regarding the content of the potential agreement have not been disclosed.
South Korean Finance Minister Choi Sang-mok stated that both parties plan to conclude the negotiations by early July, before the end of the 90-day postponement period.
According to him, the meeting laid the basic groundwork for further discussions by narrowing the range of issues and forming a shared vision of the timeline.
Republic of Korea is one of the first
South Korea (officially the Republic of Korea) was among the first countries to begin direct talks with Washington following similar consultations with Japan. The negotiations included Finance Minister Choi Sang-mok, Industry Minister Ahn Duk-geun, and US Trade Representative Jamieson Greer.
Key topics discussed included shipbuilding, energy cooperation, currency policy, and non-tariff barriers. Working-level talks between the financial departments of both countries are scheduled in the coming weeks.
The US–South Korea negotiations are taking place amid market turbulence caused by President Trump's controversial stance on tariffs and actions by the Federal Reserve. Despite expressed interest in reaching trade agreements, none have yet been officially concluded.
Bloomberg Economics notes that the initial steps by the South Korean delegation are positive, but the real test lies ahead during the detailed phase of negotiations.
In early April, Trump held a phone call with South Korea’s acting president Han Duck-soo. The leaders discussed tariffs, shipbuilding, and military support. Later, Trump stated that the chances of a major deal for both countries are very high.
Seoul is currently preparing a series of proposals aimed at reducing its trade surplus with the US, which increased by 25% in 2024, reaching $55.7 billion. According to customs data, South Korea’s exports in the first half of April declined by 5.2% year-over-year.
Trump's tariff war
In early April, US President Donald Trump imposed tariffs on imports from 180 countries that are key trade partners of the US.
However, on April 9, the White House announced a unified tariff rate of 10% for all countries except China, effective for 90 days. The Trump administration aims to negotiate individual trade agreements with each country.
South Korea is currently subject to a 25% import tariff, temporarily reduced to 10% for the 90-day period. At the same time, the country remains at risk of facing new US tariffs on imports of cars, steel, and aluminum.
It was previously reported that on Wednesday, April 23, South Korea’s chief trade representative arrived in Washington for talks with the US.
More than a hundred countries around the world have approached the Trump administration with requests to begin negotiations on tariff relief.
