South Korea Ramps Up Trade Talks Amidst Tariff Tensions

South Korea plans to intensify trade discussions with the U.S. in response to President Trump's proposed 25% tariff. The extended grace period gives both nations time to negotiate a mutually beneficial agreement. South Korea aims to improve domestic regulations and address the trade deficit with the U.S.

South Korea is set to intensify trade talks with the United States following President Donald Trump's announcement of a 25% tariff starting August 1. Trump's letters to Seoul and other trading partners have posed an early challenge for President Lee Jae Myung, in office for just a month.

U.S. Secretary of State Marco Rubio acknowledged the new deadline as a chance to strike an agreement. South Korea's Industry Ministry is committed to utilizing this period to reach a favorable outcome, even as South Korea reported a $55.6 billion trade surplus with the U.S. in 2024, driven by car exports.

President Trump expressed dissatisfaction with the trade imbalance, inviting South Korea to propose measures to open its markets. High-level talks are ongoing, with negotiators seeking exemptions on tariffs to strengthen U.S. manufacturing ties. Optimism about a potential deal has bolstered South Korea's KOSPI stock index.

(With inputs from agencies.)