South Korea proposes ‘package deal’ to avoid US tariffs
South Korea’s Trade, Industry and Energy Minister Ahn Duk-geun speaks to reporters at Incheon international airport on April 23, 2025, as he departs to Washington for finance and trade ministers talks with the US. (Photo by Jung Yeon-je / AFP)
SEOUL, South Korea — South Korea has proposed a “package deal” to Washington to avoid Donald Trump’s steep tariffs, its finance minister said Friday.
US Treasury Secretary Scott Bessent said this could bring a trade “understanding” by next week.
The country is a major exporter to the United States. Giants like Samsung Electronics and automaker Hyundai stand to take a hefty hit. That is, if the White House goes ahead with its threatened 25-percent “reciprocal” tariffs.
Finance Minister Choi Sang-mok and trade minister Ahn Duk-geun — who are in Washington — held talks with US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. They “exchanged views on US tariff policies,” the trade ministry said Friday.
READ: China, South Korea and Japan agree to strengthen free trade
South Korea proposed a “July Package” aimed at removing tariffs, the ministry said. This would be established before Trump’s 90-day suspension on “reciprocal” tariffs is set to expire on July 8.
“(We) explained that the imposition of reciprocal and product-specific tariffs by the United States could negatively impact bilateral economic cooperation,” Choi said at a press conference in Washington.
Seoul “conveyed its position that exemptions and waivers should be granted for tariffs imposed on Korean exports,” added Choi.
He added that South Korea plans to hold additional talks with Greer. He will visit Seoul to attend the APEC Trade Ministers’ Meeting scheduled for May 15 and 16.
‘Principled agreement’
The two countries “reached a principled agreement on establishing a framework for future consultations,” trade minister Anh said.
Separately, Bessent said the United States had a “very successful” meeting with the South Korean government. He added that they may be “moving faster” than he thought.
“We will be talking technical terms as early as next week as we reach that agreement on understanding as soon as next week,” Bessent told reporters.
“So the South Koreans came early… They came with their A-game, and we will see if they follow through on that,” he added.
On Thursday, South Korea’s central bank said that the country’s economy unexpectedly contracted 0.1 percent in the first three months of this year. This was blamed on tariff concerns and political chaos following a declaration of martial law.
