With the tariff moratorium deadline approaching on July 9, trade talks between the U.S. and South Korea are slowing down — and it’s not because of tariffs.

Instead, the negotiations are getting tangled in a web of non-tariff barriers: digital regulations, defense cost-sharing, agricultural access, and mounting tech-related tensions. Despite near-zero import tariffs on U.S. goods, deeper issues are holding the talks back.

💻 Digital Regulation Sparks Friction

At the heart of the standoff are South Korea’s proposed digital market laws, modeled after the EU's Digital Markets Act (DMA). They aim to curb tech giants’ dominance, improve competition, and support smaller players.

⚠️ But U.S. lawmakers argue these rules unfairly target American companies like Google, Apple, and Meta while sparing Chinese tech firms like ByteDance, Alibaba, and Temu. In a July 1 letter to U.S. trade officials, Rep. Adrian Smith and 42 other members of Congress criticized the draft laws for being discriminatory.

📡 The U.S. is also concerned about proposed "network usage fees" targeting platforms like Netflix, as well as renewed debate over Google’s request to export location data — previously denied in 2016. A final decision is expected on August 11. Apple has reportedly submitted a similar request.

🌾 Agriculture: A Quiet but Firm Roadblock

Although South Korea is one of the largest importers of U.S. beef, it still bans meat from cattle over 30 months old due to mad cow concerns. Washington wants this restriction lifted — and expanded market access for products like potatoes and apples.

👨‍🌾 Korean farmers are pushing back. At a June 30 public hearing, agricultural groups protested any further market openings, citing the 2007 agreement that already phases out tariffs on U.S. beef through 2026.

Notably, South Korea’s sky-high 500%+ tariff on rice hasn’t yet surfaced in current talks.

🪖 Defense, Industry, and Energy: The Background Players

Beyond the trade table, key issues like U.S. troop costs, currency policy, and energy cooperation are adding pressure to the broader U.S.–Korea alliance. Around 28,500 U.S. troops are stationed in South Korea, and the burden of cost-sharing remains sensitive.

Meanwhile, Seoul is highlighting its industrial value to the U.S. economy — from shipbuilding and EVs to semiconductors and AI — arguing that Korean investments help shrink America’s trade deficit.

On the energy front, South Korea has expressed preliminary interest in a $44 billion Alaskan LNG project, but officials say they need more clarity on feasibility and await technical details later this year.

⏳ All Eyes on July 9

While traditional tariffs are not the sticking point, the expiration of a 90-day moratorium on U.S. tariffs looms large. Former President Trump is expected to unveil a new wave of "reciprocal tariffs" by July 9.

As the deadline nears, time is running out to resolve the deeper disagreements. The outcomes could affect not just South Korea–U.S. trade, but also broader alignments amid rising tensions between the West and BRICS nations.




#usa , #SouthKorea , #TradeWars , #Geopolitics , #worldnews

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!

Notice:

,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“