South Korea, US to hold ‘2+2’ trade talks in Washington

Seoul, July 22 (IANS) South Korea’s Finance Minister Koo Yun-cheol said on Tuesday that he will hold so-called “2+2” high-level trade talks with the United States later this week, ahead of the looming August 1 deadline for bilateral negotiations on the US’ sweeping tariff measures.

Koo said he and Trade Minister Yeo Han-koo will head to Washington for the talks set to be held Friday, involving US Treasury Secretary Scott Bessent and US Trade Representative (USTR) Jamieson Greer.

“With the August 1 deadline fast approaching, relevant ministries have formed a unified team to respond with a well-coordinated and practical strategy for the national interest,” Koo told reporters following a meeting on key economic affairs.

When asked about Seoul’s negotiation strategy, Koo, who also serves as deputy Prime Minister for economic affairs, declined to elaborate, Yonhap news agency reported.

Koo’s upcoming visit will mark the first trip to Washington by South Korea’s highest economic official since President Lee Jae Myung came into office on June 4. Koo officially assumed his post as finance minister on Monday.

The upcoming talks will also mark the first of their kind under the Lee administration as the last round of “2+2” trade talks held in Washington in April had involved former Finance Minister Choi Sang-mok and former Industry Minister Ahn Duk-geun, both appointed under the previous Yoon Suk Yeol administration.

The US is set to start imposing 25 per cent reciprocal tariffs on South Korean products August 1, in addition to a range of sectoral tariffs, including 25 per cent duties on auto and steel imports, that are already in place.

“The foreign minister and the industry minister will also travel to the United States as early as this week to meet with their respective counterparts in an effort to persuade Washington,” Koo said.

The reciprocal tariffs originally took effect on April 9, but Trump paused them the same day for 90 days to allow for negotiations. He later extended the pause, saying the US will start imposing them on August 1.

Asked about the possibility of the deadline being further extended, Koo said the government’s current focus is on negotiations.

In an interview with CBS earlier this week, US Commerce Secretary Howard Lutnick said August 1 is a “hard deadline” for Washington’s reciprocal tariffs, emphasising that the new tariffs would go into effect as scheduled. However, he added that “nothing stops countries from talking to us after August 1.”

Yeo later said he will do his utmost to achieve the “best possible” and “constructive” outcome that would benefit both Seoul and Washington before August 1.

“We are currently facing a very critical moment, and since all possibilities, including the best and worst case scenarios, remain open, we will make every effort to reflect concerns on sensitive issues on our negotiation strategy and maximise our national interest,” the trade minister said as he departed for Washington.

“We will also actively work to ensure that the ongoing tariff negotiations lead to a positive sum outcome, one that creates a virtuous cycle of investment, procurement and the development of new growth engines between the two countries, based on the bilateral manufacturing renaissance partnership we proposed during my last trip to the US,” he added.

This week’s trip marks Yeo’s third visit to the US capital for trade talks since he took office last month.

In his most recent visit, which took place earlier this month, Yeo proposed a comprehensive manufacturing partnership in shipbuilding, semiconductor and other sectors as a way to reduce Seoul’s big trade surplus with Washington.

–IANS

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