Finalizing Plans for Washington
Scrambling to Find the Last Chance to Avoid Tariff Bomb
With the deadline for the expiration of the US reciprocal tariff suspension (July 8) approaching, the South Korean government is launching a last-minute diplomatic effort. According to reports, Yeo Han-koo, the head of trade negotiations at the Ministry of Trade, Industry and Energy, is considering a visit to Washington, D.C. this weekend. He is expected to explore options for extending or minimizing the tariffs through a series of meetings with senior officials from the US Trade Representative (USTR), the Department of Commerce, and other agencies.
According to multiple officials from the Ministry of Trade, Industry and Energy on July 3, Yeo is finalizing plans to visit the US between the 5th and 6th. If the visit goes ahead, he is likely to hold direct meetings with Jamieson Greer, the US Trade Representative, and Howard Lutnick, the US Secretary of Commerce. This would be his second visit to Washington, following his trip at the end of last month.
The United States is currently poised to impose high tariffs?up to 50%?on South Korean steel, aluminum, and auto parts. The four-month suspension, which has been in effect since March, is set to expire on July 8. The US side has repeatedly stated that "there will be no further extensions," making Yeo's visit to the US effectively the final opportunity for negotiations.
The government plans to propose a comprehensive package of mutually beneficial measures, not only seeking an extension of the tariff suspension but also including: expanding manufacturing cooperation; easing non-tariff barriers; increasing purchases of US energy and products; and cooperating on the Alaska LNG project. In particular, based on the recent case in which the US adjusted tariffs on Vietnam from 46% to 20%, South Korea aims to secure negotiating room as a "rational partner."
If the US visit is finalized, this round of negotiations is expected to be a critical turning point for South Korean companies' export conditions to the US. The government held a Trade Promotion Committee meeting the previous day to review its response strategy and is also briefing the National Assembly on the situation. A Ministry of Trade, Industry and Energy official stated, "We are considering all possibilities and seeking a diplomatic solution," adding, "We are also preparing supplementary measures to minimize the impact on businesses."
President Lee Jaemyung also stated at a press conference marking his 30th day in office, "The tariff negotiations are very difficult and unpredictable," and added, "The government will do its utmost until the negotiation deadline."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
