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On April 23, 2025, South Korea’s Trade, Industry and Energy Minister Ahn Duk-geun arrived at Incheon International Airport, preparing for discussions in Washington aimed at addressing finance and trade matters with U.S. officials.
As the country maneuvers through complex negotiations, South Korean authorities have urged for “calm” and “orderly” dialogue with the United States. The goal is to finalize an agreement by July to prevent the imposition of tariffs, which could impact the nation’s economy.
During the “2+2” discussions held in Washington, South Korean Finance Minister Choi Sang-mok and Minister Ahn engaged with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer. According to reports from Yonhap, Minister Choi highlighted four focal points for the ongoing dialogue: tariff and non-tariff regulations, economic security strategies, investment partnerships, and monetary policy frameworks.
A statement from South Korea’s Ministry of Finance indicated that Choi emphasized the importance of achieving mutually advantageous outcomes while also voicing concerns regarding potential tariffs. This dialogue is particularly pressing as the deadline approaches for U.S. President Donald Trump’s 90-day suspension of tariffs, set to expire on July 8.
Moreover, Minister Choi reaffirmed South Korea’s position as a “reliable partner” in international trade discussions. Minister Ahn outlined proposals to enhance bilateral cooperation, including support for the revitalization of the U.S. shipbuilding industry, promoting sustainable trade practices, and bolstering energy security in South Korea. He also advocated for specific tariff exemptions tailored to South Korean exports.
Despite some temporary reprieves from reciprocal tariffs, South Korea is still contending with significant levies: a 25% tariff on steel and aluminum, alongside another 25% on vehicle imports—both of which constitute major export categories for the country.
Brands like Hyundai and Kia rank among the top automotive sellers in the U.S., as indicated by data from Carpro. Furthermore, South Korea stands as the fourth-largest steel exporter to the U.S. in 2024, per statistics from the International Trade Administration.
Despite the favorable outlook for reaching a trade agreement, analysts at ANZ have pointed out that South Korea’s political landscape might prolong negotiations. A pivotal presidential election on June 3 is set to reshape the government’s stance on various issues, which could influence the negotiation process moving forward.
The elections hold particular significance following the dismissal of former president Yoon Suk Yeol, who was removed from office on April 4 after an attempt to declare martial law.
— Contributions to this report were made by CNBC’s Blair Baek.
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