South Korea calls commerce talks ‘very troublesome’, deal unlikely earlier than July 9 deadline – Firstpost

South Korea’s president has expressed scepticism that fraught commerce talks with the USA may be concluded earlier than Washington’s July 9 deadline to avert steep tariffs, saying that “the 2 sides should not actually clear on what they need”.

President Lee Jae Myung informed reporters on Thursday (July 3) that Seoul was “doing its utmost” to discover a decision to negotiations triggered by US President Donald Trump’s menace to impose a 25 per cent “reciprocal” tariff on Asia’s fourth-largest economic system.

Delays, uncertainty stays regardless of Trump’s threats

Nonetheless, he downplayed expectations of a breakthrough earlier than the US resumes tariffs on a number of nations.

“We’re actively figuring out and creating many agenda gadgets throughout varied areas,” Lee mentioned. “[But] at this level, it’s troublesome to say with certainty whether or not they are often concluded” by the deadline.

His feedback adopted a recent warning by Trump earlier this week that he would possibly increase tariffs on Japan to between 30 and 35 per cent from the present 24 per cent. That transfer has rattled officers in Seoul, who had hoped for a deadline extension.

Commerce discussions have already been delayed for months as a result of political instability in South Korea following the impeachment of Lee’s conservative predecessor Yoon Suk Yeol.

Monetary Occasions cited a number of sources aware of the talks as saying South Korea had indicated its willingness to deal with its $55 billion commerce surplus with the US. Proposals embody rising purchases of American gasoline and defence tools, and eradicating non-tariff boundaries that had been publicly criticised by US Commerce Consultant Jamieson Greer.

Negotiators are additionally discussing South Korean investments in US shipyards to assist revitalise American shipbuilding, together with for the US Navy. Another choice below dialogue is a Korean dedication to purchase gasoline from a proposed undertaking in Alaska backed by the Trump administration.

Nonetheless, one supply famous that progress on shipbuilding cooperation had been hampered by US protectionist laws that restricts overseas participation within the sector. Korean firms have additionally been reluctant to decide to the Alaska liquefied pure gasoline undertaking, whose business viability stays unsure, based on vitality business specialists.

US-South Korea commerce

The US accounted for 18 per cent of South Korean exports in 2024, with main items together with vehicles, auto elements, equipment and intermediate merchandise utilized in Korean-run manufacturing vegetation in America.

South Korea already has a complete free commerce settlement with the US, below which most tariff charges are speculated to be zero. Nonetheless, the nation continues to be pushing for the elimination of a 25 per cent US tariff on auto imports, which has led to a big drop in Korean automobile exports to the American market.

South Korean producers have additionally been affected by US tariffs on metal and family home equipment. Seoul fears extra tariffs on chip and pharmaceutical imports may comply with later this 12 months, doubtlessly undermining any deal reached this month.

One individual aware of the discussions mentioned American negotiators had grown annoyed that their Korean counterparts have been “not being formidable sufficient”. However additionally they acknowledged that Seoul remained unclear about Washington’s exact calls for. “All they know is that no matter it’s, the Individuals need extra,” the individual mentioned.