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Trade agreements

South Korea and US Engage in Last-Minute Trade Negotiations

Strategic Insights

— 1 min read

South Korean and US officials are in an all-out diplomatic effort to finalize a trade deal before a Friday deadline, when 25% reciprocal tariffs and sector-specific duties will take effect. The negotiations are focusing on areas like semiconductors, batteries, biotechnology, and shipbuilding cooperation. The South Korean government is also considering Japan's trade deal with the US, which lowered tariffs in exchange for market access to autos and rice, as a possible model for their negotiations.

Key Takeaways:

  • South Korea and the US are engaged in last-minute trade negotiations, focusing on areas such as semiconductors, batteries, biotechnology, and shipbuilding cooperation.
  • The presidential office said that in-depth discussions are ongoing in the shipbuilding industry, while negotiations are also continuing in other areas.
  • South Korea has proposed a comprehensive package that includes industrial cooperation in other major areas, including a possible shipbuilding cooperation initiative called Make American Shipbuilding Great Again (MASGA).
  • The government is also negotiating market access for US agricultural and livestock products, with a focus on putting the national interest first and achieving mutually beneficial outcomes.
  • Business leaders, including Hyundai Motor Group Executive Chair Euisun Chung, Samsung Electronics Chairman Lee Jae-yong, and Hanwha Group Vice Chairman Kim Dong-kwan, have "voluntarily" traveled to the US to support the ongoing trade negotiations.
  • Private companies are leveraging their extensive networks in the US and sharing the basic direction of the government's negotiating framework from the perspective of the private sector.

Statistics:

  • The proposed tariffs on South Korean exports to the US would be 25%, with sector-specific duties also in effect.
  • Japan's trade deal with the US lowered the 25% reciprocal tariffs to 15% in exchange for market access to autos and rice, as well as a $550 billion investment pledge.
  • South Korea is pitching a comprehensive package that includes industrial cooperation in other major areas, such as semiconductors, batteries, and biotechnology.

Sources:

  • Yonhap News Agency, 30 July 2025
  • Yonhap News Agency (referenced indirectly through direct quote)

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