The negotiations between the US and South Korea are ongoing, just before the expiration of a 90-day tariff pause, establishing new pathways for collaboration in digital economy, agriculture, and defense.
Digital Trade Tensions
At the heart of the trade disputes are South Korea’s legislative proposals aimed at curtailing the dominance of large tech platforms. These laws are reportedly modeled after the EU’s Digital Markets Act and aim to increase transparency, promote fair competition, and protect smaller digital firms.
However, US lawmakers argue that these measures unfairly target American companies. South Korean Democrats are reportedly considering delaying passage of the digital rules to avoid jeopardizing ongoing trade talks.
Agricultural Issues
Despite being the world’s largest importer of US beef, South Korea maintains a ban on beef from cattle over 30 months old, citing fears of mad cow disease. Washington has called for lifting these restrictions and for wider market access for other products, including potatoes and apples.
However, South Korean farmers are pushing back. Agricultural groups protested at a public hearing on June 30 against any further opening of the market, recalling a 2007 deal that phased in zero tariffs on US beef by 2026.
Defense and Energy Cooperation
Beyond trade, foreign exchange policy and cost-sharing for US troops stationed in South Korea, where about 28,500 soldiers are currently stationed, are also being addressed.
Although not officially part of trade talks, these factors weigh on the strategic relationship between the two nations. South Korea emphasizes its industrial contributions to the US economy, citing joint ventures in shipbuilding, AI, batteries, semiconductors, and electric vehicles. Energy collaboration is another topic of interest, particularly with South Korea expressing tentative interest in a $44 billion LNG project in Alaska.
The negotiations between the US and South Korea significantly impact the trade policies of both countries, touching on key aspects such as digital economy, agriculture, and defense. With the July 9 deadline for the tariff pause approaching, these issues require urgent resolution.
