South Korea Races to Finalize Trade Deal with US Amid Tariff Pressure

In Washington, three South Korean cabinet-level officials convened with US Commerce Secretary Howard Lutnick. The meeting, announced by Seoul on Wednesday, aimed to advance a trade agreement. The discussions took place just before an impending deadline.

The South Korean delegation included Finance Minister Koo Yun-cheol, Industry Minister Kim Jung-kwan, and Minister for Trade Yeo Han-koo. They engaged in a two-hour discussion with Lutnick. A ministry spokesperson in Seoul confirmed the meeting. However, specific details of the talks were not disclosed.

The urgency stems from a deadline set by US President Donald Trump. He has indicated a 25 percent tariff increase against South Korea, a significant US ally and a major exporter of goods like chips, automobiles, and steel, effective August 1.

The meeting followed a report in the Wall Street Journal. The report indicated that Lutnick had previously urged the South Korean team to present their most favorable offer. This occurred during a meeting with Kim and Yeo in Scotland. Lutnick reportedly told the South Korean officials to "bring it all" when presenting their final offer to Trump.

Finance Minister Koo, who arrived in Washington on Tuesday, expressed his hope to persuade the United States. He aimed to demonstrate that the proposed trade package, along with industrial cooperation offers, including shipbuilding, would benefit both nations. Koo also planned to meet with US Treasury Secretary Scott Bessent during his visit.

South Korea faces increasing pressure. Japan secured a deal to reduce Trump's threatened tariffs to 15 percent. This was followed by a US-EU trade agreement. Additionally, Trump's top advisors are working to finalize a deal with China. South Korean Foreign Minister Cho Hyun will also travel to Washington this week to support the tariff negotiations.