Yeo Han-koo, Minister for Trade of the Ministry of Trade, Industry and Energy’s trade negotiation headquarters, visited Washington D.C. for the first time since taking office and reiterated the necessity of the Inflation Reduction Act (IRA) tax credit and the 25% reciprocal tariff exemption while meeting with U.S. government and congressional officials.
According to the Ministry of Trade, Industry and Energy on the 26th, Minister Yeo met on the previous day (local time) with U.S. House of Representatives Commissioner Jason Smith, Chairperson of the House Ways and Means Committee, Representative Carol Miller, Chairperson of the House Ways and Means Trade Subcommittee Adrian Smith, and Benjamin Leroy, the White House International Trade Advisor, expressing the Korean government’s intentions.
The Korean trade delegation, led by Minister Yeo, visited Washington D.C. from the 22nd to the 27th to conduct the first high-level Korea-U.S. trade negotiations under the Lee Jae-myung administration.
Minister Yeo held a meeting with House Ways and Means Chairperson Smith in his office and requested active support to ensure that Korean corporations can engage in stable and predictable business activities during the budget reconciliation process that includes IRA tax credits.
During a meeting with Representative Carol Miller and Chairperson of the House Ways and Means Trade Subcommittee Adrian Smith, Minister Yeo also requested that any policy changes from the U.S. regarding IRA tax credits not deter investments and business activities of Korean corporations in the U.S.
Additionally, he met with Benjamin Leroy at the White House to discuss expediting Korea-U.S. trade negotiations and exploring ways to establish a forward-looking cooperative relationship between the two countries.
Minister Yeo also held initial consultations simultaneously on the 23rd at 4 p.m. with U.S. Secretary of Commerce Howard Lutnick and Jamieson Greer, the U.S. Trade Representative. This is the first high-level industrial and trade consultation between the two countries under the Lee Jae-myung administration.
At this meeting, Minister Yeo conveyed the need for a 25% reciprocal tariff and exemptions on tariffs for items such as automobiles, steel, and aluminum regarding the United States.
He also emphasized that Korea could become a ‘strategic partner’ for the U.S. in various manufacturing sectors and proposed mutually beneficial discussions to establish strategic cooperative relations covering not only tariffs but also the broader manufacturing industry through the Korea-U.S. trade negotiations.
Accompanying this trip to the U.S. is Park Jeong-seong, head of the trade and investment bureau, who is serving as the practical representative for technology negotiations and conducting the third Korea-U.S. technology consultation from the 24th to the 26th.
The technology consultations will involve the task force (TF) for negotiations with the U.S. and relevant ministries discussing acceptable alternatives based on the issues raised so far.