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U.S. Treasury Secretary says contours of Korea-U.S. trade deal 'coming together'

Published: 30 Apr. 2025, 09:58

YOON SO-YEON
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U.S. Treasury Secretary Scott Bessent speaks during a press briefing at the White House in Washington D.C. on 29 April. [EPA/YONHAP]

The "contours" of a trade deal between Korea and the United States "are coming together," according to U.S. Treasury Secretary Scott Bessent on Tuesday, five days after discussions between the two governments took place on April 24.

“I could see the contours of a deal with the Republic of Korea coming together," Bessent told reporters in a briefing at the White House on Tuesday, when asked about the U.S. government's progress in trade talks with India, Korea and Japan.

Bessent remarked that the three countries are "much more keen" on striking trade deals with the United States.

"We are continuing to make substantive movement on negotiations with many of our trading partners," Bessent said in a post uploaded on X, formerly Twitter, on Tuesday.

"The negotiations with our Asian trading partners are going very well, the negotiations with the Republic of Korea have gone very well," he said. "The VP's negotiations with India went very well, and I think we've had some very substantial negotiations with our Japanese allies."

Bessent reportedly commented that upcoming domestic elections — Korea’s June 3 presidential election and Japan’s July Upper House election — may actually encourage governments to push for trade agreements with the United States rather than delay them.

"We are finding that they are actually much more keen to come to the table, get this done, and then go home and campaign on it," the secretary said.

White House press secretary Karoline Leavitt and Treasury Secretary Scott Bessent participate in a press briefing at the White House on April 29, 2025, in Washington. [AP/YONHAP]

Bessent's remarks contradict the earlier speculation presented by Korea’s Deputy Prime Minister for Economic Affairs Choi Sang-mok and Minister of Trade, Industry and Energy Ahn Duk-geun after their "2+2" consultation with U.S. counterparts.

At the time, Choi and Ahn said that both sides agreed to work toward a "July Package" to be completed by July 8, the day the temporary suspension of reciprocal tariffs ends, but emphasized that they "would not rush" negotiations — implying that the next Korean administration would likely conclude the final deal.

A diplomatic source in Washington noted, "Secretary Bessent’s remarks came during a briefing aimed at promoting President Donald Trump’s economic achievements around his 100th day in office, so he may have painted a more optimistic picture than the reality."

Regarding China, Bessent refused to comment on specific negotiations but said that China will realize over time that their tariffs "are unsustainable for them."

China could lose 10 million jobs "very quickly," and could still lose five million jobs even if tariffs are reduced, according to Bessent.

He explained that the U.S. would prioritize talks with 17 countries first, leaving China aside for now.

U.S. President Donald Trump holds a cap with the words ″Gulf of America″ embroidered as he speaks to the media before boarding Marine One to depart for Michigan to attend a rally to celebrate his first 100 days in office, from the South Lawn of the White House in Washington, D.C., on April 29, 2025. [REUTERS/YONHAP]

India likely to be first to strike deal

Among the countries engaged in tariff negotiations with the United States, India appears closest to reaching an agreement.

“I think that we are very close on India,” Bessent said, noting that India’s high tariffs make negotiating easier compared to tackling nontariff barriers.

In fact, Trump also mentioned India while departing the White House, commenting that tariff negotiations with India are “coming along great."

“I think we’ll have a deal with India,” Trump said, according to CNBC. “The prime minister, as you know, was here three weeks ago, and they want to make a deal.”

U.S. Commerce Secretary Howard Lutnick said in an interview with CNBC that the United States has completed negotiations with one country and is awaiting approval from its prime minister and legislature, widely interpreted as a reference to India.

U.S. President Donald Trump delivers remarks during a visit with the 2025 Super Bowl champion the Philadelphia Eagles on the South Lawn of the White House in Washington on April 28. [EPA/YONHAP]

U.S. to ease auto parts tariffs for two years

Meanwhile, the Trump administration announced a policy easing tariffs on imported automobile parts for vehicles manufactured in the United States.

A senior Commerce Department official said the administration would allow automakers to offset auto parts tariffs for two years through a credit system.

Under the new system, a car manufacturer can submit records of vehicles produced and sold domestically and receive credits equivalent to 15 percent of the vehicle’s price. These credits can then be used to offset future import tariffs on auto parts.

"Essentially, this will allow manufacturers to import up to 15 percent of a vehicle’s components tariff-free," the official explained.

Export-ready cars are seen parked at a exclusive port for automobiles in Pyeongtaek, Gyeonggi on April 29. [NEWS1]

This policy is set to last for two years. In the first year, the credit will offset the 25 percent tariff by approximately 3.75 percentage points (0.25 × 0.15 = 0.0375). In the second year, the credit rate will decrease to 10 percent.

The senior official said the decision came after automakers stressed the need for time to fully localize their supply chains in the United States, adding, "Two years should be sufficient."

The United States has been imposing a 25 percent tariff on imported automobiles since April 3. The same tariff will apply to automobile parts starting May 3.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY YOON SO-YEON, KIM HYOUNG-GU [[email protected]]