With U.S. focus elsewhere, Korea fights for face time on tariff deal

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With U.S. focus elsewhere, Korea fights for face time on tariff deal

Published: 27 Jul. 2025, 17:12 Updated: 27 Jul. 2025, 19:27

Audio report: written by reporters, read by AI

U.S. President Donald Trump waves as he plays at Trump Turnberry golf course during a private visit in Turnberry, Scotland, on July 26. [EPA/YONHAP]

With just days to go before U.S. tariffs hit Korean exports, Seoul is scrambling to strike a last-minute deal and avoid a damaging trade clash. Washington appears to be more focused on sealing trade deals with larger economic partners — the European Union and China — leaving Korea with shrinking diplomatic bandwidth.

U.S. President Donald Trump is set to meet European Commission President Ursula von der Leyen on Sunday in Scotland, where they are expected to finalize key terms in ongoing trade negotiations. Talks between the United States and the 27-member European Union bloc are reportedly nearing conclusion. Analysts say a tentative deal to impose a 15 percent tariff on EU-made vehicles could be struck at the meeting.

European Commission President Ursula von der Leyen prepares to address the plenary at the European Parliament in Strasbourg, eastern France, July 18, 2024. [AP/YONHAP]

U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamison Greer also flew to Scotland on Saturday to attend the high-level EU talks, Reuters reported, citing an anonymous government source. As President Trump left the White House on Friday en route to Scotland, he placed the odds of a deal at “50-50.”

Washington’s attention will then pivot to China. Senior U.S. and Chinese officials will gather in Stockholm on Monday and Tuesday for what’s expected to be the final round of high-stakes negotiations. The two economic giants had agreed in May, during a meeting in Geneva, to each cut their tariffs by 115 percentage points for a 90-day period.

In a follow-up session in London in June, they agreed to lift export restrictions: China would resume rare-earth shipments to the United States, and Washington would ease controls on AI semiconductor exports to China.

On Friday, Trump said talks with Beijing were “taking shape.” U.S. Treasury Secretary Scott Bessent, Lutnick, and Greer — all of whom were central to the previous negotiations — are scheduled to attend the Stockholm meeting. Chinese Vice Premier He Lifeng will again lead Beijing’s delegation.

Given this packed itinerary, only two days — Wednesday and Thursday — remain for any substantive U.S.-Korea negotiations before the tariff deadline.

Responding to an inquiry from the JoongAng Ilbo, the White House said Friday that Washington and Seoul were in “productive discussions” — the first time it has used such positive language to describe the talks.

Still, the White House stressed that if no deal is reached, Trump’s “tariff letter” — made public on July 7 — would stand as final notice. That letter warned Korea that a 25 percent tariff would be imposed on Korean-made products starting Aug. 1.

Seoul is intensifying its diplomatic push to avoid that outcome. Korean Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo, currently in Washington, met Lutnick at the U.S. Department of Commerce on Thursday. They then continued negotiations late into Friday night at Lutnick’s residence in New York. On Saturday, they reportedly briefed the Korean presidential office on progress and calibrated their strategy.

On the eve of the tariff deadline, Korea’s Deputy Prime Minister and Finance Minister Koo Yun-cheol is scheduled to meet Treasury Secretary Bessent in New York. Their talks, initially set for Friday, were postponed due to a scheduling conflict for Bessent. Foreign Minister Cho Hyun is also expected to meet U.S. Secretary of State Marco Rubio on Thursday to explore nontariff avenues for cooperation.

Deputy Prime Minister and Finance Minister Koo Yun-cheol leaves Incheon International Airport on July 24 after his meeting with U.S. Treasury Secretary Scott Bessent, scheduled for the following day in Washington, was canceled before his departure from Korea. [JOINT PRESS CORPS]

As the clock ticks, Washington is ramping up the pressure. Trump has reiterated his intent to finalize trade deals with all major partners by Aug. 1. Analysts say Trump’s recent praise of Australia for easing beef import restrictions was a veiled jab at Korea, which maintains a ban on U.S. beef from cattle older than 30 months. Trump also cited Japan’s recent $550 billion investment pledge as an example, signaling that he wants bold economic commitments from Seoul as well.

Korean negotiators are reportedly pushing to lower the 25 percent tariff rate, with a target of matching Japan’s 15 percent deal, while requesting maximum reductions on sector-specific tariffs for items such as automobiles and steel.

A trade expert familiar with the talks said the 15 percent rate “does not seem like an impossible goal,” given Korea’s strategic value in shipbuilding and defense. But slashing the tariff on cars — from 25 to 15 percent — would likely require significant Korean concessions.

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