SEOUL, July 28 (AJP) - With the United States locking in trade agreements with Japan and the European Union, South Korea is making a last-ditch effort to avoid steep tariffs that could further strain its slowing economy.
Deputy Prime Minister and Finance Minister Koo Yoon-cheol will travel to Washington this week for a face-to-face meeting with U.S. Treasury Secretary Scott Bessent on Friday, officials said Monday.
The talks will take place on the final day of a temporary tariff grace period, and are widely seen as Seoul’s last opportunity to stave off a potential 25 percent levy on its exports.
The urgency of the mission has intensified in recent days.
On July 22, U.S. President Donald Trump announced a breakthrough agreement with Japan that sets a 15 percent tariff rate on Japanese exports to the United States and includes a $550 billion investment pledge from Tokyo.
Five days later, a similar deal was reached with the European Union, establishing matching tariff terms and $600 billion in new European investments.
South Korea, by contrast, remains on the outside looking in. Talks between Seoul and Washington have dragged on for months, and a previously planned “2+2” trade consultation was abruptly canceled earlier this month.
Minister Koo was already en route to the U.S. when he was ordered to turn back at Incheon International Airport. Friday’s meeting is now expected to serve as final coordination before the tariff decision deadline.
Korean officials warn that the imposition of mutual 25 percent tariffs would deal a heavy blow to Korea’s key manufacturing exporters, already reeling from U.S. steel and auto tariffs.
The finance ministry has flagged a risk of “snowballing economic damage,” with additional levies potentially pushing South Korea’s growth trajectory deeper into stagnation.
To break the impasse, Seoul is preparing a fresh set of negotiating offers. These include expanded industrial cooperation in shipbuilding — a sector that Trump has cited as strategically important — as well as a possible revision of South Korea’s “$100 billion” investment plan in the U.S. market. The move comes after Tokyo’s $550 billion commitment raised expectations for other allies to follow suit.
Notably, South Korean officials have also confirmed that agricultural products are now on the negotiating table, raising speculation that the government may consider concessions on politically sensitive imports such as rice and beef — long regarded as untouchable due to strong domestic opposition.
Trade experts caution that while Seoul faces pressure to align with the U.S. amid shifting global trade alignments, any deal must also protect core domestic industries already weakened by sluggish exports and thinning profit margins.
reporter
Candice Kim
candicekim1121@ajupress.com
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