Amid the threat of high tariffs being reintroduced by the U.S., South Korean Trade Minister Yeo Han-koo has held a series of meetings in Washington aimed at establishing a beneficial trade agreement.
Negotiations with the U.S. Before Deadline
The visit of the South Korean trade minister concluded on Friday, just ahead of the July 9 deadline when suspended tariffs of 25% could be reinstated. Yeo met with U.S. officials, including Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer, to discuss a new deal.
South Korea's Economy Under Pressure
South Korea's economy faces significant challenges and risks. The reinstatement of tariffs could severely impact key industries such as semiconductor, automotive, and battery manufacturing. The Bank of Korea has also downgraded its 2025 GDP forecast to 0.8%.
U.S. Plans for New Trade Agreements
The U.S. is actively seeking to finalize new trade agreements. Secretary Lutnick stated that there are plans to wrap up 10 new deals in the coming two weeks. However, countries that do not reach agreements by July 9 could face stricter measures.
Given the growing pressure on the economies of both nations, the talks surrounding the trade agreement between South Korea and the U.S. are particularly timely. The success of these discussions could significantly impact future economic cooperation.
