New Trade Horizons: US and South Korea's Tariff Talks Take Flight

South Korea and the U.S. are working on a deal to remove new U.S. tariffs ahead of a July deadline. The two nations seek exemptions and have agreed to further discussions focused on tariffs, economic security, and investment. The talks come amidst international tariff negotiations involving other countries.

South Korea and the United States are collaborating to devise a series of deals to lift new U.S. tariffs before the reciprocal tariffs pause ends in July, according to Seoul's delegation. The nations engaged in successful negotiations in Washington, focusing on crafting an agreement by July 8.

Key participants included U.S. Treasury Secretary Scott Bessent and South Korean Finance Minister Choi Sang-mok, who outlined areas of discussion like tariff exemptions, shipbuilding, and addressing trade imbalances. Working-level talks are scheduled next week to fine-tune discussions spanning tariff measures and economic security.

This development occurs as the U.S. negotiates similar tariff deals with other countries globally. South Korea faces a significant challenge with a 25% reciprocal tariff on its automobiles, which remains a focal point of discussions. Meanwhile, reports indicate no trade deal will cover military defense costs, emphasizing trade's separation from defense negotiations.

(With inputs from agencies.)