South Korea’s push to secure a critical tariff deal with the United States intensified this week as Industry Minister Kim Jung-kwan met with U.S. Commerce Secretary Howard Lutnick in Washington, days before former President Donald Trump’s August 1 tariff deadline.
South Korea’s push to secure a critical tariff deal with the United States intensified this week as Industry Minister Kim Jung-kwan met with U.S. Commerce Secretary Howard Lutnick in Washington, days before former President Donald Trump’s August 1 tariff deadline.
During Thursday’s high-level meeting, both sides reaffirmed their intent to reach a deal that would protect South Korean manufacturers from punitive U.S. tariffs, especially following Washington's agreement with Japan earlier this week, News.Az reports, citing Reuters.
“We’ll do our best so that our companies are not put at a disadvantage relative to those in competing countries,” Kim said, according to a statement from South Korea’s Industry Ministry on Friday.
The urgency comes after Trump announced a U.S.–Japan trade agreement that includes expanded access for American autos and agricultural products. The deal has raised pressure on South Korea, a direct competitor to Japan in sectors like automobiles and steel.
“You can hear the expletives out of Korea when they read the Japanese deal,” Lutnick told CNBC before his meeting with Kim.
“They very, very much want to make a deal,” he added.
South Korean Trade Minister Yeo Han-koo is also in Washington and expected to meet with U.S. Trade Representative Jamieson Greer. Earlier this week, Kim met with U.S. Energy Secretary Chris Wright, as Seoul mobilizes its diplomatic and economic resources in what officials describe as the “critical final phase” of talks.
The negotiations are being led by a new team in Seoul, with some ministers less than a week into their roles under newly elected President Lee Jae Myung. Despite the inexperience, the administration is signaling determination.
In a major move, South Korea is preparing to propose an investment package worth at least $100 billion, according to Yonhap News Agency. The deal would reportedly involve heavyweights like Samsung, Hyundai Motor Group, SK Hynix, and LG, South Korea’s largest conglomerates, as strategic partners in boosting U.S. investment.
President Lee met with Samsung Electronics Chairman Jay Y. Lee on Thursday and has held talks with other business leaders to coordinate a national effort.
In a setback, South Korea’s Finance Minister Koo Yun-cheol had to cancel a scheduled Friday meeting with U.S. Treasury Secretary Scott Bessent, after being informed of a last-minute scheduling conflict just 90 minutes before his departure.
Nonetheless, analysts say Japan’s $550 billion investment and loan package, pledged as part of its deal, will likely serve as a benchmark for what South Korea must offer.
“Japan pledged a $550 billion package... which Lutnick said would be used ‘at Donald Trump’s discretion,’” according to U.S. officials.
Bottom line: With only days to go, South Korea is racing against the clock to finalize a U.S. trade deal that could shape the future of its global manufacturing competitiveness, and its broader economic relationship with Washington.
