SKorea trade envoy hoping for deal with US by deadline

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European Union officials say they would prefer a negotiated solution on US trade differences.
European Union officials say they would prefer a negotiated solution on US trade differences.

South Korea’s top trade envoy says it may be possible to strike an “in-principle” trade deal with the United States by an August 1 deadline, but time is short to work out a detailed package seeking exemption from punishing US tariffs.

Trade Minister Yeo Han-koo, who held high-level talks with US officials last week, said South Korea may have to make some strategic decisions over its agriculture market as part of trade negotiations with the United States, the Yonhap News Agency said.

“I believe it’s possible to reach an agreement in principle in the US tariff negotiations, and then take some time to negotiate further,” the Newsis news agency quoted Yeo as telling local media reporters.

Vehicles for export are parked at a port in Pyeongtaek, South Korea
South Korea had a $US55.6 billion trade surplus with the US in 2024, led by rising car exports. (AP PHOTO)

“Twenty days are not enough to come up with a perfect treaty that contains every detail.”

“We need to make a strategic judgment in the case of the agriculture and livestock sectors,” Yeo was quoted as saying, adding “sensitive” areas may need continued protection but some aspects may be considered as part of the overall framework.

There was “considerable progress” in the discussion with US officials over co-operation in key industrial sectors as part of the trade talks, Yeo was cited as saying, but Washington needed to cut industry-specific tariffs on autos and steel.

On Sunday US President Donald Trump told reporters “South Korea wants to make a deal right now”, without elaborating what would cement a deal or speculate on a time frame for getting negotiations done.

President Donald Trump
Donald Trump issued new tariff announcements for Japan, South Korea, Canada and Brazil. (AP PHOTO)

South Korea is in a race to reach a compromise trade pact in the hope of avoiding a 25 per cent tariff slapped on its exports by Trump that is set to kick in on August 1, after a late start to negotiations with a new president voted in last month.

South Korean officials held meetings in Washington after Trump’s announcement, hoping to negotiate cuts or exemptions from import duties on steel and autos.

South Korea earned a record $US55.6 billion ($A84.6 billion) trade surplus with the US in 2024, up 25 per cent from 2023, led by rising car exports.

Reuters