The United States and South Korea are nearing a deal to avoid new tariffs. Both countries aim to prevent the introduction of additional U.S. tariffs before the current mutual suspension of duties ends in July. Officials confirmed the progress in discussions on Thursday.
Progress in Tariff Negotiations
U.S. Treasury Secretary Scott Bessent expressed optimism about the talks, saying, “We’re moving faster than I expected.” Bessent, along with U.S. Trade Representative Jamieson Greer, met with South Korean officials, including Finance Minister Choi Sang-mok and Industry Minister Ahn Duk-geun, to discuss the tariff issue.
Though specifics were not disclosed, the South Korean government revealed it had requested exemptions from some U.S. tariffs. In exchange, Seoul proposed strengthening cooperation in sectors such as energy, shipbuilding, and addressing trade imbalances.
Final Deal Expected Before July
Minister Choi confirmed that the discussions would continue next week. Both governments are working towards finalizing the agreement by July. South Korea was one of the first countries the Trump administration engaged with for bilateral trade negotiations. Currently, U.S. tariffs of up to 25% apply to various South Korean exports, including steel and automotive products.
China Considers Easing Tariffs on U.S. Goods
In related news, China may soon take steps to ease trade tensions with the U.S. According to sources reported by Bloomberg, the Chinese government is considering reducing tariffs—some of which reach as high as 125%—on certain U.S. goods. These goods include medical devices and industrial chemicals like ethane. However, no official confirmation from the Chinese government has been made regarding this potential policy shift.
As both the U.S. and South Korea move closer to a tariff deal, global trade dynamics remain under close scrutiny. The talks between these two nations will set important precedents for future international trade agreements, especially in light of ongoing U.S. negotiations with other countries. Meanwhile, China’s potential move to ease tariffs on U.S. products adds another layer to the shifting trade landscape.