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Korea, U.S. dispatch top trade officials in 'full-court press' as Trump tariff deadline looms

Published: 06 Jul. 2025, 19:17 Updated: 07 Jul. 2025, 11:45

Trade Minister Yeo Han-koo, right, shakes hands with U.S. Trade Representative Jamieson Greer at the Office of the United States Trade Representative building in Washington on July 5. [NEWS1]

Korea is rushing to secure a last-minute reprieve from looming U.S. reciprocal tariffs, sending its top trade and security officials to Washington in a full-court diplomatic press.

Trade Minister Yeo Han-koo met with U.S. Trade Rep. Jamieson Greer on Saturday, discussing a broad range of topics, including tariffs and bilateral manufacturing cooperation. They also explored the possibility of extending the current tariff exemptions to allow more time for negotiations, according to Korea’s Ministry of Trade, Industry and Energy.

U.S. President Donald Trump said on Friday that he had signed several letters related to the new tariffs and planned to send them on Monday.

“I signed some letters, and they’ll go out on Monday, probably twelve,” Trump said. “Different amounts of money, different amounts of tariffs.”

U.S. President Donald Trump speaks to reporters on board Air Force One in Morristown, New Jersey, on July 4. [AP/YONHAP]

Trump added that the new reciprocal tariffs would likely take effect on Aug. 1, around three weeks after the exemption deadline. That leaves room for additional negotiation.

Trump hinted that the final reciprocal tariff rates would be "around 15 or 20 percent," raising the base rate — 10 percent since April 5 — by at least 5 to 10 percentage points. Trump previously indicated the rates could vary significantly by country, with some facing 10, 20, even 60 or 70 percent, prompting speculation that he is using the tariff letters to pressure countries dragging their feet in negotiations.

The ministry said Yeo emphasized the need to reinforce bilateral supply chains and pushed for the elimination or easing of tariffs on sectors like autos and steel.

“We’re making every effort to reach a mutually beneficial deal,” Yeo said. “We’ll keep pushing discussions based on our national interest until the very end.”

Yeo’s visit comes just one week after he first held high-level trade talks in Washington from June 22 to 28. The JoongAng Ilbo reported that he did not book a return flight to Seoul in order to prepare for possible talks.

Wi Sung-lac, director of the National Security Office, is also set to visit Washington from Sunday to Tuesday. While Yeo leads working-level trade negotiations, Wi is expected to coordinate a potential summit between President Lee Jae Myung and Trump to finalize an agreement.

“The situation is evolving rapidly, so we must respond with a full-court press,” Yeo said on Saturday. “Trade and security teams are coordinating closely when needed and dividing responsibilities where necessary."

Trade Minister Yeo Han-koo speaks to press upon arrival at a train station in Washington on July 5. [YONHAP]

But he declined to predict whether a final deal could be reached before Tuesday.

“We can’t rule out a broad high-level agreement, even if the fine details remain unresolved,” Yeo said. “This is an extremely volatile and uncertain moment.”

The atmosphere surrounding the talks remains tense and unpredictable. The JoongAng Ilbo reported that Yeo will present Seoul’s positions on U.S. demands such as the removal of non-tariff barriers and balancing the bilateral trade deficit.

One of the biggest flashpoints is digital trade.

The United States has taken aim at Korea’s proposed online platform law, which would label major digital firms as “dominant platforms” and bar them from practices deemed "unfair" such as bundling services or imposing contract disadvantages.

The Fair Trade Commission is promoting the bill as a tool to protect small businesses and consumers. The Lee administration considers it a core initiative aligned with its campaign promises for fairer economic practices.

But Washington argues the law disproportionately affects U.S. tech firms like Google, Apple and Meta. Forty-three members of the U.S. House of Representatives recently sent a letter to U.S. Treasury Secretary Scott Bessent urging changes to the bill, escalating pressure on Seoul. The United States previously derailed Canada’s digital tax proposal during trade talks, leading Ottawa to drop the plan.

In the ongoing negotiations, Seoul is reportedly offering to significantly relax environmental regulations on U.S.-made cars. Korean officials believe such a move could be effective, citing lower consumer satisfaction with U.S. vehicles.

U.S. officials, meanwhile, have pushed to expand access to Korea’s agricultural market, reflecting the interests of Trump’s core rural supporters. Yeo reportedly asked the Ministry of Agriculture, Food and Rural Affairs to review importing U.S. apples — something Washington requested back in 1993.

Korea’s quarantine procedures, considered rigorous, have only completed two of eight stages in the 32 years since the request. According to the JoongAng Ilbo, Seoul told Washington that opening Korea’s rice market, a longstanding U.S. demand Trump raised publicly with Japan, is not on the table.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM HYONG-GU [[email protected]]