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Korea, U.S. talking again on tariffs, aim to reach final deal before APEC summit

Published: 24 Sep. 2025, 17:32 Updated: 24 Sep. 2025, 17:42

U.S. President Donald Trump, fifth from left, poses for a photo with Korea’s delegation for tariff negotiations, including Minister of Economy and Finance Koo Yun-cheol, fifth from right, at the White House on Aug. 30. [SCREEN CAPTURE]

Korea and the United States are making renewed efforts to break the deadlock in their stalled tariff negotiations, aiming to finalize an agreement before the APEC summit in Gyeongju at the end of next month.

According to government officials on Wednesday, Deputy Prime Minister and Finance Minister Koo Yun-cheol is expected to meet U.S. Treasury Secretary Scott Bessent in New York on Wednesday. The two sides are expected to focus on plans to establish a $350 billion Korea-U.S. investment fund and discuss a possible currency swap agreement to support it.

Separately, Trade Minister Yeo Han-koo is also set to engage in follow-up negotiations with U.S. Trade Representative Jamieson Greer. Yeo departed for Malaysia on Tuesday to attend an Association of Southeast Asian Nations (Asean) economic ministers’ meeting.

Earlier this month, both Yeo and Industry Minister Kim Jung-kwan held meetings in the U.S. with Greer and U.S. Commerce Secretary Howard Lutnick, respectively, but failed to make progress.

The two countries initially reached a deal at the end of July to reduce bilateral and automotive tariffs from 25 percent to 15 percent. Under the agreement, Korea would also commit to investing $350 billion in the United States. However, the two sides remain at odds over the structure of the investment.

Washington is reportedly pushing for equity investments similar to those made by Japan, while Seoul prefers a structure that reduces its financial burden by using guarantees rather than cash — a gap that has yet to be bridged.

Korea has warned that making the majority of the $350 billion investment in cash could destabilize its foreign exchange markets. It is therefore proposed that a currency swap agreement be established as a safeguard to mitigate potential shocks from the massive outflow.

U.S. President Donald Trump, in front of U.S. Secretary of Health and Human Services Robert F. Kennedy Jr., delivers remarks linking autism to childhood vaccines and to the use of popular pain medication Tylenol bypregnant women and children, claims which are not backed by decades of science, at the White House in Washington on Sept. 22. [REUTERS/YONHAP]

Despite the impasse, Seoul says it is keeping communication channels open.

“We’re in a push-and-pull phase,” said Industry Minister Kim, adding that talks had previously stalled but are now continuing.

The presidential office has set a deadline to conclude negotiations before the APEC summit at the end of next month.

“Although the gap in positions remains wide and adjusting views is not easy, we don’t consider the talks deadlocked,” presidential national security adviser Wi Sung-lac said during a briefing in New York. “If a breakthrough is found even before the summit, we are prepared to finalize the deal.”

Some analysts say Korea should develop alternatives to unlock progress.

“Instead of direct cash investments, Korea could propose a package deal including long-term energy purchases from Alaska or increased market access for U.S. agricultural products,” said Chang Sang-sik, head of trade analysis at the Korea International Trade Association.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM WON [[email protected]]