Finance, trade ministers to head to Washington to press for tariff deal
Published: 22 Jul. 2025, 18:57
Audio report: written by reporters, read by AI
![Finance Minister and Deputy Prime Minister Koo Yoon-cheol presides over an external economic affairs ministers’ meeting at the Government Complex Seoul in Jongno District, central Seoul, on July 22. [MINISTRY OF ECONOMY AND FINANCE]](https://koreajoongangdaily.joins.com/data/photo/2025/07/22/b7285e69-c216-4f24-927b-7ddc88b6e07e.jpg)
Finance Minister and Deputy Prime Minister Koo Yoon-cheol presides over an external economic affairs ministers’ meeting at the Government Complex Seoul in Jongno District, central Seoul, on July 22. [MINISTRY OF ECONOMY AND FINANCE]
Korea will launch an all-out diplomatic campaign in Washington this week as it prepares to negotiate with the United States ahead of tariffs to take effect on Aug. 1, with what the government has described as a “full-court press” to fend off Washington’s trade demands.
Finance Minister Koo Yun-cheol and Trade Minister Yeo Han-koo will travel to Washington for a “2+2" trade dialogue scheduled for Friday with a strategy that has been likened to the defensive basketball tactic. The plan was confirmed during the new administration’s first external economic ministers’ meeting at the Government Complex in Seoul on Tuesday.
Industry Minister Kim Jung-kwan is scheduled to depart on Wednesday, and Minister of Foreign Affairs Cho Hyun will soon follow for bilateral talks. National Security Adviser Wi Sung-lac and an interparty parliamentary delegation are already in the United States.
The Korean government has prepared a “package deal” to address the United States’ concerns over its trade deficit. The negotiating framework is expected to cover a wide range of issues, including industrial cooperation in shipbuilding and semiconductors, loosened import restrictions on automobiles, expanded Korean investment in Alaskan liquefied natural gas (LNG), the removal of nontariff barriers such as agricultural and online platform regulations and increased defense and military spending.
“Trade Minister Yeo and I will hold a 2+2 meeting with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer on July 25,” Koo said Tuesday.
Notably, Washington has opted to send Greer instead of Commerce Secretary Howard Lutnick. Korea, in turn, is dispatching its chief trade negotiator Yeo rather than the industry minister, signaling the prioritization by both sides of detailed discussions over protocol.
The move is seen as an effort by the Donald Trump administration to fine-tune the terms of any potential deal. Seoul also believes Yeo, who has already visited the United States twice for earlier rounds of talks, will bring much-needed continuity to the negotiation process. Industry Minister Kim is expected to meet later with Lutnick to explore further avenues of industrial cooperation.
“Our goal is to produce the best possible outcome before Aug. 1, without compromising the national interest for the sake of a deadline,” Yeo said before departing for the United States on Tuesday morning.
![Korea's Trade Minister Yeo Han-koo, right, shakes hands with U.S. Trade Representative Jamieson Greer during a meeting in Washington on July 5. [MINISTRY OF TRADE, INDUSTRY AND ENERGY]](https://koreajoongangdaily.joins.com/data/photo/2025/07/22/b982fef9-2b59-4efc-82b6-239aa2aea767.jpg)
Korea's Trade Minister Yeo Han-koo, right, shakes hands with U.S. Trade Representative Jamieson Greer during a meeting in Washington on July 5. [MINISTRY OF TRADE, INDUSTRY AND ENERGY]
Tough road ahead
Despite the push, significant hurdles remain. Washington continues to press for increased market access in politically sensitive areas such as beef and rice, as well as the dismantling of digital platform regulations. Korean negotiators are struggling to propose viable alternatives amid domestic resistance.
One major flashpoint is Korea’s proposed “Online Platform Fair Act,” which includes provisions to regulate U.S. tech giants like Google and Apple. Washington has voiced strong objections to the bill. In response, Korea’s Democratic Party and the Fair Trade Commission are reportedly planning to postpone discussions until after August.
The United States also wants Korea to ease rules on network usage fees and allow Google to transfer high-resolution map data outside of Korea. But Korean authorities, concerned about the implications for domestic tech firms and national security, remain cautious.
Washington has made additional demands: lifting the age limit on imported U.S. beef over 30 months, easing rice import limits and loosening quarantine rules on U.S. apples and other produce. These requests are politically sensitive in Korea, where farming communities and many lawmakers are vocally opposed to opening up the agricultural sector.
The United States is also pushing for Korean participation in a manufacturing investment fund and in the development of its Alaskan LNG project, though both proposals remain difficult to finalize.
![An RC-12X Guardrail reconnaissance aircraft lands at Camp Humphreys in Pyeongtaek, Gyeonggi, on July 16. [NEWS1]](https://koreajoongangdaily.joins.com/data/photo/2025/07/22/53f3f8f1-325d-47ef-a9a8-f1f8baf19a40.jpg)
An RC-12X Guardrail reconnaissance aircraft lands at Camp Humphreys in Pyeongtaek, Gyeonggi, on July 16. [NEWS1]
Defense spending is another major sticking point. The United States has secured a NATO pledge to raise defense budgets to 5 percent of GDP by 2035 and wants Korea to follow suit. But Korea’s current defense budget of 61.25 trillion won ($44.1 billion), which accounts for just 2.32 percent of GDP, makes such an increase implausible in the short term.
Analysts believe Washington’s posture has shifted since reaching deals with Vietnam and Indonesia, giving the United States more leverage. In fact, U.S. Treasury Secretary Bessent emphasized that time is on Washington’s side.
"We’re proceeding apace with the negotiations, but we’re not going to rush for the sake of doing deals," he told CNBC on Monday. “The important thing here is the quality of the deal, not the timing of the deals."
Meanwhile, Japan, the European Union (EU) and Taiwan — all competing with Korea in the U.S. market — are also facing pressure. Japan’s ruling party lost its majority in the upper house in elections on Sunday, weakening Prime Minister Shigeru Ishiba’s position ahead of Tokyo’s talks with Washington.
The EU, struggling in its own negotiations, is reportedly considering invoking its Anti-Coercion Instrument (ACI) to retaliate against U.S. trade pressure. The ACI could impose restrictions on services, foreign investment, financial markets and intellectual property.
Heo Yoon, a professor at Sogang University’s Graduate School of International Studies, said the talks are likely to proceed with both sides exchanging prearranged concession lists.
“If Korea wants to avoid tariff damage and reach a deal, it may opt for a ‘British-style’ model — agreeing on a broad framework now and leaving the finer points for later,” Heo said, explaining that would give the United States a symbolic win while allowing Korea to secure tangible gains.
Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM WON [[email protected]]
with the Korea JoongAng Daily
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