As the July 9 date approaches for the United States to impose reciprocal tariffs, only ten days remain, but tariff negotiations between Korea and the U.S. still seem far from resolution. The two countries conducted the third round of tariff technical discussions in Washington, D.C., last week, but failed to produce any clear results. Within the government, the likelihood of reaching an agreement before July 9 is considered low. No additional technical consultation schedules have been set before the 9th of next month.
A senior government official said on the 30th, "It is difficult to say what percentage the progress of the Korea-U.S. tariff negotiations is at right now," adding, "It seems that substantial negotiations will need to continue even after July 8. I think there is still a long way to go."
This senior official met with reporters in the Ministry of Trade, Industry and Energy's press room and stated, "No matter how well the negotiations go, the possibility of returning to the state before tariffs are imposed is very low," adding that, "The key is to drive negotiations toward expanding balance under high tariffs, which is the new normal." The official explained that expanding balance means increasing trade between the two countries while reducing the U.S. trade deficit.
The government has also decided to no longer use the term "July package," which was suggested by the previous administration with the goal of reaching an agreement within July. Initially, reaching an agreement before the imposition of reciprocal tariffs was the top priority, but it has been deemed difficult to realistically achieve this goal, so the focus is shifting from deadlines to content.
The senior official remarked, "It is not advantageous to proceed with negotiations by setting a deadline," stating that, "Yeo Han-koo, the chief trade negotiator, also mentioned that he hoped the term 'July package' would not be used anymore." This official added, "We will do our best in negotiations while delaying the imposition of reciprocal tariffs as much as possible."
There were also achievements in the third round of talks. During this consultation, the U.S. side reportedly left open the possibility of postponing tariffs on specific items such as automobiles and steel if the trade balance is improved.
The senior official stated, "The Korea-U.S. tariff negotiations are discussing the aspect related to the 15% reciprocal tariff. The basic tariff of 10% is considered a non-negotiable part." He added, "However, we are continuously raising issues regarding tariffs on automobiles and steel, and the U.S. has reflected this in negotiations with the United Kingdom. There has been a position indicating that these aspects could also be considered in this working-level consultation."
In the process of adjusting the trade balance between Korea and the U.S., there is also the potential to reflect the export performance of our corporations that have invested in the U.S. It is suggested that the contribution of Korean corporations to the expansion of exports to the U.S. may be considered an achievement of expanding manufacturing cooperation between the two countries, which could lead to a reduction in tariffs as an incentive.
The senior official explained, "The ultimate goal of the U.S. imposing tariffs is to revive manufacturing, and Korea could become a key partner in that revival. From this perspective, there is a structure that could lead to a unique deal," adding, "It remains open whether tariff reduction measures could be granted as credits for the effects of investments by Korean corporations."
He stated, "Additional working-level technical consultations between Korea and the U.S. are unlikely before July 8," adding, "It is a situation that is impossible in terms of time. I will continue to have discussions as opportunities arise with senior officials or chief representatives."
There are suggestions about the possibility of a summit meeting between President Lee Jae-myung and President Trump to resolve the issue. To this, the senior official avoided answering, saying it is "beyond my scope."