As the end of the reciprocal tariff suspension approaches, Yeo Han-koo, Deputy Minister of the Ministry of Trade, Industry and Energy, has embarked on final negotiations aimed at maximizing gains. Yeo first visited Washington, D.C., as a senior trade official after the new government launched from September 22-28, and was dispatched back to the area just a week later.
On 5th (local time), Yeo met with reporters at Union Station in Washington, D.C., stating, "I am scheduled to begin negotiations with Jamieson Greer, the representative of the U.S. Trade Representative (USTR), from this afternoon," and added, "I feel the situation is urgent right now." He noted, "Currently, a lot remains uncertain and variable," and mentioned, "Through today's negotiations, we plan to focus on figuring out the more specific U.S. plans and on the ways we can maximize our gains within that framework."
In response to U.S. President Donald Trump's mention of the start date for the reciprocal tariff as August 1, he said, "It's hard to assert anything before confirming at the negotiation table," but he also indicated, "I expect there will be a short grace period even if new reciprocal tariff rates for countries including Korea come out after the suspension expires on July 8."
Regarding the possibility of an agreement between Korea and the U.S. by the 8th, Yeo stated, "All possibilities are open," and explained, "It is not impossible to reach substantial agreements on major frameworks." However, he added, "It will be difficult to finalize agreements that include all the details within three days."
Regarding negotiation strategies, Yeo said, "We talk about a 'manufacturing renaissance partnership,' as corporations in Korea are showing interest in investing in the U.S., and there are fields with high potential for cooperation such as AI, semiconductors, automobiles, batteries, energy, and bio, which the U.S. needs significant cooperation in rebuilding its manufacturing sector," and he emphasized, "I believe Korea has unique value in those areas."
He emphasized, "I am trying to negotiate by bundling these tariff negotiations with the medium- to long-term Korea-U.S. industrial and technological cooperation over the next 4 to 5 years in a positive sum manner (the opposite of zero-sum)."
Yeo stated, "In a short period since the new government launched, we have made significant progress, and I believe we are in the process of establishing negotiation channels with the U.S. and building mutual trust," while also saying, "It is still too early to make predictions, but it seems that the U.S. is leaving some room for negotiation on reciprocal tariffs with all countries."
Regarding the outlook on item-specific tariffs, he mentioned, "Item-specific tariffs (on automobiles, steel, and aluminum) are deemed significant from the perspective of U.S. industrial protection, so they will likely be more challenging." He also highlighted, "However, from Korea's position, I have repeatedly emphasized that it is important to apply exceptions or significantly reduce item-specific tariffs, and I plan to do so today as well."
In discussions surrounding digital trade, he noted, "It's one of the important areas," adding, "It shows a great deal of interest in the U.S. political and business sectors." He further stated, "Finding a balance by well-coordinating potential trade friction and our domestic policy goals is important."
In response to comparisons being made regarding the U.S. reaching agreements with Vietnam and the UK ahead of Korea, Yeo remarked, "Those are countries that we find difficult to compare ourselves with," explaining, "Vietnam is at a different stage of economic development than us, and in the case of the UK, they export about 100,000 cars annually to the U.S., while Korea exports around 1 million to 1.4 million."
Regarding future response plans, he stated, "As the situation continues to evolve rapidly, we must combine efforts in trade and security where applicable and divide roles individually to ensure 'all-court pressing.'"
During this visit, Yeo plans to present Korea's specific response plans regarding the U.S. demands for reducing non-tariff barriers and improving the trade balance. This negotiation plan is reported to include mutually beneficial industrial cooperation methods and Korea's stance on non-tariff barriers raised during the technical discussions with the U.S.
The Trump administration has set reciprocal tariffs for 57 economic entities, including Korea, on April 2, and has suspended them for 90 days since April 9. Subsequently, bilateral negotiations surrounding tariffs, non-tariff barriers, and trade imbalances are underway as the suspension concludes. President Trump has indicated that he plans to send letters outlining the reciprocal tariff rates to 12 countries on the 7th, but Yeo stated he does not know whether Korea is included.