Contentious Trade Talks: South Korea and U.S. Navigate Complex Agenda

South Korea's delegation is set to discuss multiple trade issues with U.S. officials in Washington, including tariffs, investment opportunities, and defense costs. While both parties may seek to lower tariffs and expand investments, concerns remain over trade imbalances and military cooperation expenditures.

A South Korean delegation is scheduled to meet with U.S. officials in Washington to engage in trade discussions that encompass a broad spectrum of topics. President Donald Trump has mentioned priorities such as rebalancing trade, tariffs, shipbuilding, energy cooperation, and defense cost-sharing.

South Korea is keen on mitigating threats from reciprocal tariffs set at 25% and item-specific levies on products like steel and semiconductors. The nation aims to lower the tariff rate to 10% but faces challenges in obtaining exemptions. The revised U.S.-Korea Free Trade Agreement has helped reduce tariffs to 0.79% by 2024, yet more concessions may be demanded by the U.S. in agricultural sectors.

Amidst these negotiations, any decisions could significantly impact investment strategies, as illustrated by South Korea's potential for increased production bases in the United States. Moreover, energy cooperation is on the agenda, with discussions on a $44 billion Alaskan natural gas project awaiting further talks. Shipbuilding collaborations and defense costs also remain critical discussion points between the two nations.

(With inputs from agencies.)