South Korea continues to push for the conclusion of trade negotiations with the US, even as the deadline for tariff increases approaches. Officials express hope for an extension before the negotiations wrap up.
Negotiations Continue
According to a senior South Korean trade official who requested anonymity, it is not feasible to expect negotiations to conclude before comprehensive tariffs take effect on July 9. The official also noted that many countries, including South Korea, may need to work out the details of their negotiations long after the initial deadline.
Tariff Situation
South Korea’s newly appointed Trade Minister Yeo Han-koo is actively working on this issue. Korean companies have not been exempt from President Trump's tariff campaign, and the country is required to pay a 10% tax on exports to the US, which could rise to 25% without a deal or extension of the grace period.
Trump Administration's Position
Despite the efforts of South Korea’s trade minister, there is no certainty that the country will be granted an extension. President Trump indicated he does not intend to extend the deadlines on talks with any trading partners, expressing a preference to shorten them, which jeopardizes the possibility of any agreements.
South Korea finds itself in a challenging situation, as uncertainty regarding tariffs threatens the country's export-dependent economy. The future of its trade relations with the US largely hinges on the stance of the Trump administration.
