The South Korean Ministry of Industry has sent a delegation to Washington this Wednesday to consult with the U.S. Trade Representative's Office on technical details, striving to secure exemptions or more lenient terms for goods such as automobiles, steel, electric vehicles, ship components, and consumer electronics before the Trump administration reinstates tariffs (up to 25%) on July 8.

Previously, Industry Minister An Deok-geun and Finance Minister Choi Sang-hyun visited the U.S. and reached a preliminary agreement; this trip lays the groundwork for subsequent negotiations, which are expected to continue until after the South Korean presidential election on June 3 and the inauguration of the new government.

The two sides have not yet formally entered substantive negotiations; South Korea has also proposed strengthening cooperation in the fields of shipbuilding, energy projects, and reducing the trade deficit, and has requested leniency regarding U.S. non-tariff barriers such as the Jones Act.

In addition, South Korea is negotiating financing for a $44 billion liquefied natural gas project with Alaska.

  • If exemptions or lenient terms can be reached before the tariffs take effect on July 8, it will ease trade friction between South Korea and the United States, stabilizing the global supply chains for automobiles, steel, and electronics;

  • This progress helps to strengthen the South Korea-U.S. alliance, enhancing the synergy of the two countries in responding to the influence of economies such as China and Japan in the Asia-Pacific region;

  • For South Korea, obtaining exemptions can reduce export costs and improve competitiveness in the U.S. market; for the U.S., it means leveraging South Korean technology and investment to promote domestic shipbuilding, energy projects, and liquefied natural gas development;

  • The review of non-tariff barriers by both sides will become an important precedent in future multilateral trade negotiations;

  • If negotiations are delayed until after the new South Korean government takes office, it may trigger short-term market uncertainty, but it also provides the new leadership with an opportunity to reassess and upgrade bilateral relations.