US Treasury Secretary: "South Korea Made a Very Good Offer Even Before the Presidential Election"

"Baesant: Trade Talks With South Korea Progressing"
"U.S. Seeks Economic Rebalancing With China Through the 'Geneva Mechanism'"

Scott Baesant, the U.S. Secretary of the Treasury who is leading tariff negotiations under the Donald Trump administration, stated that trade talks with South Korea are making progress.

According to Bloomberg and the Associated Press, on the 13th (local time), Secretary Baesant said at the U.S.-Saudi Investment Forum held in Riyadh, Saudi Arabia, "South Korea is currently undergoing a government transition, but they have come forward with a very good proposal before the election process gets fully underway."

Scott Baesant, U.S. Secretary of the Treasury. Photo by AFP Yonhap News

Secretary Baesant commented on trade negotiations with Asian countries such as South Korea, Japan, Indonesia, and Taiwan, saying, "Things in my world are going very well." He specifically mentioned, "We had very productive discussions with Japan. Indonesia, which is a major trading partner, has been highly cooperative, and Taiwan has also presented a very good proposal."

In contrast, regarding negotiations with the European Union (EU), he said, "It might be a bit slower," and added, "In my personal view, Europe may face a 'collective action problem,' as Italy and France, for example, want different things." He continued, "However, I am confident that in the end, we will reach a satisfactory conclusion."

The United States, which had been engaged in a triple-digit tariff war with China, held high-level talks in Geneva, Switzerland on May 10-11 and agreed to lower the tariffs imposed on each other by 115 percentage points for 90 days. Secretary Baesant referred to the U.S.-China agreement as the 'Geneva Mechanism,' stating, "We had plans and procedures in place. What was missing with China was a mechanism." He explained, "After this weekend, we will have a mechanism that allows us to avoid the kind of escalation we saw in the past."

However, he clarified that the U.S. does not seek a complete decoupling (supply chain separation) from China, and that the decoupling strategy will be pursued only for key strategic industries where self-sufficiency is not possible, such as semiconductors and pharmaceuticals. He added, "The United States will bring these industries back home."

Secretary Baesant stated that China is trying to shift toward a consumption-driven economy, while the Trump administration is aiming to expand precision manufacturing within the United States, suggesting the possibility of a "large and beautiful economic rebalancing" between the U.S. and China. He went on to say that the 'dream scenario' would be for the U.S. and China to cooperate to "open up the Chinese consumer market" and work together toward a rebalancing in which China purchases more American goods.

He emphasized, "I believe that everyone, including the Chinese leadership, agrees that we must cooperate to reorient toward consumption and a consumer-driven economy."