Trump: "Trade Talks with EU Proceeding Seriously... China in Final Stages" (Comprehensive)

Revealed at AI Summit... Foreign Media Predict "15% Tariff on EU"
15% Tariff Emerging as Minimum Threshold
US Requests Postponement of Korea-US 2+2 Talks Scheduled for the 25th

On the 23rd (local time), President Donald Trump of the United States stated that trade negotiations with the European Union (EU) are proceeding seriously, and that talks with China are in their final stages. The tariff negotiations with the EU are expected to conclude with the imposition of a 15% tariff on the EU, similar to the agreement reached with Japan the previous day. As the United States accelerates last-minute negotiations ahead of the announcement of reciprocal tariffs on August 1, the '2+2 Finance and Trade Talks' between South Korea and the United States, originally scheduled for the 25th, were suddenly postponed at the request of the US side.

In his speech at the Artificial Intelligence (AI) Summit held in Washington DC that day, President Trump said, "We are engaged in serious negotiations with the EU, and I have proposed that if they open their markets to American companies, we would lower tariffs." He added, "Tariffs are very important, but opening other countries' markets may be even more important."

Donald Trump, President of the United States, is delivering a speech at the Artificial Intelligence (AI) Summit held in Washington DC on the 23rd (local time). Photo by Reuters Yonhap News

On the same day, the Financial Times (FT) and the Wall Street Journal (WSJ) reported that a tariff agreement between the United States and the EU is imminent, with expectations of a 15% tariff being imposed. According to the WSJ, EU officials are discussing potential terms of agreement with the US side, which has agreed to the 15% tariff rate. Citing sources, the FT reported that the EU is likely to agree to the 15% tariff level in order to avoid a tariff increase to 30% starting August 1. The FT also stated that the European Commission briefed member states on this matter on the same day.

The 15% tariff is similar to the current tariff imposed on EU exports. Since April, the United States has imposed an additional 10% tariff on EU exports. With the existing average tariff rate at 4.8%, a total rate of 14.8% is currently applied. According to officials, the 15% tariff includes the existing tariffs, and the EU regards an agreement on these terms as maintaining the status quo.

However, tariffs on automobiles, a key issue in the US-EU trade negotiations, are expected to be significantly reduced. Currently, EU automobiles face a 27.5% tariff rate, but this is expected to be lowered to 15%, similar to Japan. The 50% tariff on steel is expected to remain unchanged.

If both sides reach an agreement on these terms, the outcome will be similar to the US-Japan trade agreement announced the previous day. Sources indicated that the EU reluctantly accepted these terms following the conclusion of the US-Japan agreement. The 15% rate appears to have become the minimum threshold and guideline.

However, there are still concerns that the negotiations could fall apart at the last minute. A negotiator stated that, in case both sides fail to reach an agreement by August 1, the EU is continuing to prepare a retaliatory tariff package worth up to 93 billion euros (about 150 trillion won), with tariffs as high as 30%. A US official also commented that the situation is fluid and subject to change.

Regarding the US-China trade negotiations, President Trump said they are "in the final stages." The United States and China are scheduled to hold the third round of high-level trade talks in Stockholm, Sweden, on July 28-29, with US Treasury Secretary Scott Besant and Chinese Vice Premier He Lifeng in attendance. Secretary Besant stated on the 22nd that it is highly likely the two countries will extend the mutual agreement to reduce ultra-high tariffs, which was set to last for 90 days since May.

President Trump also said, "Because we cannot negotiate with every country, we will apply very simple tariffs to some countries," adding, "It will be between 15% and 50%." Bloomberg News explained that this signals a more aggressive approach to imposing tariffs on countries other than the few that have already reached agreements.

For South Korea, which falls into the category of the remaining countries, the situation has become urgent. This is because the '2+2 Finance and Trade Talks' between South Korea and the United States, scheduled to be held in Washington DC on the 25th, were suddenly canceled. It was reported that the US side notified the postponement by email about an hour before departure, citing Secretary Besant's urgent schedule.

On the 24th, the Ministry of Economy and Finance announced to the press, "The 2+2 talks scheduled with the United States for the 25th could not be held due to Secretary Besant's urgent schedule," adding, "The US side proposed to reschedule as soon as possible, and both Korea and the United States plan to set a new date at the earliest possible time."

South Korea and the United States had planned to hold negotiations in Washington DC about a week before the reciprocal tariffs take effect on August 1, with Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol and Trade Minister Yeo Hankoo representing South Korea, and Secretary Besant and US Trade Representative Jamison Greer representing the United States.

The US side sent the cancellation notice by email at around 9 a.m. that day, without specifying the exact reason. It is known that Deputy Prime Minister Koo received the news while waiting to depart for the United States at Incheon Airport that morning. An official from the Ministry of Economy and Finance said, "The US side did not specify the detailed circumstances. We are looking into the details," adding, "The US side proposed to reschedule as soon as possible, and both Korea and the United States plan to set a new date at the earliest possible time."

Meanwhile, Minister of Trade, Industry and Energy Kim Jeonggwan and Trade Minister Yeo Hankoo, who have begun their respective visits to the United States, are expected to continue contacts with their counterparts as planned. The Ministry of Economy and Finance stated, "Minister Kim and Minister Yeo's consultations with their US counterparts are proceeding as originally planned."