Home > Business > Economy

White House says Korea, U.S. in 'productive' talks ahead of tariff deadline

Published: 26 Jul. 2025, 13:58 Updated: 26 Jul. 2025, 18:24

Korea’s Industry Minister Kim Jung-kwan, left, shakes hands with U.S. Secretary of Commerce Howard Lutnick at the U.S. Department of Commerce in Washington on July 24. Korea’s Trade Minister Yeo Han-koo stands at the center. [NEWS1]

With just days left before a potential U.S. tariff on Korean imports, the White House said Friday that it "continues to have productive negotiations” with Korea on trade issues.

A White House official made the remark in a statement issued in response to an inquiry from the JoongAng Ilbo regarding the current state of bilateral talks.

The statement comes a week ahead of the Aug. 1 deadline set by U.S. President Donald Trump for the imposition of mutual tariffs on Korean goods.

The official added that while discussions are ongoing, the president’s earlier directive remains in effect if “no other agreement is reached.” Trump’s “tariff letter,” issued on July 7, warned that a 25 percent tariff would be imposed on Korean products if the two sides fail to reach a deal by the deadline.

In response, the Korean government is stepping up last-minute efforts to finalize a deal before the deadline. On Friday, Korean Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo continued negotiations with U.S. Commerce Secretary Howard Lutnick at his residence in New York. A day earlier, Kim and Yeo also held an 80-minute meeting with Lutnick at the Commerce Department to discuss possible paths to an agreement.

Meanwhile, the White House dismissed speculation that the abrupt cancellation of the planned Korea-U.S. “2+2” trade meeting was a sign of diplomatic friction or deliberate disregard toward Korea.

Although the official said they did “not have specifics” regarding U.S. Treasury Secretary Scott Bessent’s scheduling conflict, they emphasized that the cancellation was “not reflective of the discussions.”

The 2+2 meeting, originally scheduled for Friday, was to include Korea’s Deputy Prime Minister and Finance Minister Koo Yun-cheol, Trade Minister Yeo, U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer. However, Korea’s Finance Ministry received a last-minute email from Bessent’s office citing an urgent scheduling matter and calling off the talks on Wednesday afternoon.

The sudden cancellation sparked speculation that Washington was expressing dissatisfaction with Seoul’s latest trade proposals — potentially pressuring Korea to offer greater concessions on market access or U.S. investment. Some also suggested the talks were deprioritized within the U.S. trade agenda.

However, the White House's latest statement appears aimed at drawing a line under such interpretations, signaling that negotiations are continuing and that the cancellation was not part of any deliberate strategy to sideline Seoul.

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