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Top Korean, U.S. commerce officials meet in Washington to discuss tariff exemptions, shipbuilding

Published: 28 Feb. 2025, 17:27

JIN EUN-SOO
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Korea's Industry Minister Ahn Duk-geun, left and U.S. Commerce Secretary Howard Lutnick shake hands at a meeting held in Washington on Feb. 27. [MINISTRY OF TRADE, INDUSTRY AND ENERGY]

Top commerce officials from Korea and the United States met in Washington on Thursday to discuss key trade concerns and cooperation in the shipbuilding sector against a backdrop of building U.S. tariff pressure.

The meeting was the first of its kind since U.S. President Donald Trump's inauguration.

Korea's Minister of Trade, Industry and Energy Ahn Duk-geun and U.S. Commerce Secretary Howard Lutnick met at the Commerce Department's headquarters in Washington on Thursday for reportedly cordial discussions that lasted over an hour. Korea's ambassador to Washington, Cho Hyun-dong, also participated in the meeting.

Ahn asked for Korea's exemption from U.S. tariff measures, according to the Industry Ministry on Friday. Both sides agreed to establish a working-level consultation channel to discuss tariffs and possible cooperation in the shipbuilding sector.

Talks on shipbuilding cooperation between Korea and the United States have gained momentum since President Trump asked Korea to help build ships for the U.S. Navy to counter China's prowess in the sector.

Korean officials have launched all-out efforts to engage with their U.S. counterparts on the looming shift in trade policy and its potential challenges for Korean businesses. U.S. President Trump heralded a 25 percent tariff on steel and aluminum imports as well as reciprocal tariffs that could impact Korea, which currently trades most goods without tariffs under its FTA with the United States.

Secretary Lutnick had previously suggested a $1 billion investment threshold for Korean companies to receive extra incentives such as fast-tracking of administrative procedures when he met with a Korean business delegation last week.

Minister Ahn told reporters that the threshold "can be fulfilled" before leaving for the U.S.

Meanwhile, Korea's acting president and Finance Minister Choi Sang-mok held a video conference with U.S. Treasury Secretary Scott Bessent on Friday morning.

Choi asked Bessent to recognize Korea's contribution to the U.S. economy which expands to direct investment and job creation.

Despite the political turmoil Korea is going through, Choi said the country's economy has demonstrated strong resilience on the back of a solid economic system and stable government administration.

BY JIN EUN-SOO [[email protected]]