South Korea is making a last-ditch effort to avert sweeping new US tariffs, as officials from Seoul and Washington race to extend a looming deadline for finalising trade deals. According to a statement from South Korea’s industry ministry, Trade Minister Yeo Han-koo met US Trade Representative Jamieson Greer in Washington on Saturday, urging an extension of the 9 July deadline while proposing new manufacturing partnerships aimed at avoiding tariffs on key exports such as automobiles and steel, as per Bloomberg. The meeting underscores growing anxiety in Seoul over President Donald Trump’s threat to impose 25 per cent across-the-board tariffs as early as next month, a move that could hit South Korea’s vital manufacturing sector hard.
Trump has warned that the United States would issue letters to trading partners confirming new unilateral tariff rates that would take effect on 1 August. South Korea pitches manufacturing partnerships South Korea’s industry ministry said Yeo outlined a “mutually beneficial” framework for industrial cooperation, intended to strengthen bilateral supply chains while calling for the elimination or reduction of tariffs on major export products. As per the ministry’s statement, both sides agreed they had conducted “good faith” negotiations for a month following South Korea’s recent change in government, but acknowledged that more work was needed to bridge remaining differences, as per Bloomberg.
Yeo’s appeal marks an urgent diplomatic push by Seoul to protect its economy, which is already grappling with weak domestic consumption. South Korea’s central bank cut its GDP growth forecast for 2025 to 0.8 per cent in May, down from 1.5 per cent previously. Seoul ramps up diplomatic outreach The talks in Washington represented Yeo’s second trip to the United States in just over a week, a sign of Seoul’s determination to revive stalled negotiations following a period of political turmoil at home.
President Lee Jae Myung took office last month after winning a snap election triggered by the ousting of Yoon Suk Yeol. Yoon’s imposition of martial law late last year led to the country’s worst political crisis in decades and created a leadership vacuum that delayed key policy negotiations, including trade. South Korean officials appear to be working quickly to re-establish momentum.
Lee’s national security adviser, Wi Sung-lac, also departed for Washington on Sunday for meetings with US Secretary of State Marco Rubio, who is also serving as acting national security adviser. High stakes for South Korea’s economy Speaking with reporters before leaving Seoul, Wi described the negotiations as being in a “critical phase” and said he would seek to arrange an initial summit between President Lee and President Trump while also discussing broader security and bilateral issues, as per Bloomberg. South Korea is a major US ally and a global manufacturing powerhouse, exporting cars, semiconductors and batteries.
The threat of 25 per cent tariffs on its goods has alarmed industry leaders, who warn such levies would further undermine an already sluggish economy. By pushing for an extension to the deadline, Seoul hopes to buy time to secure a deal that would limit or eliminate the threatened tariffs and provide stability for its exporters. (With inputs from the agencies)
