Seoul, Washington move toward July trade deal; skip defense burden talks

South Korea and the United States on April 24 (local time) held their first high-level “2+2” economic talks in Washington, seeking to avert the reimposition of mutual and product-specific tariffs set to resume in July.

Facing the looming expiration of a mutual tariff waiver on July 8, the two countries launched the dialogue to prevent a new round of trade friction and coordinate strategies across trade, investment, and economic security.

South Korean Deputy Prime Minister and Finance Minister Choi Sang-mok said he conveyed public concern over U.S. tariffs on Korean exports during the 85-minute meeting, which included U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer.

Trade Minister Ahn Duk-geun also raised issues such as energy security, mutual industrial cooperation, and the exemption of Korean products from targeted U.S. tariffs. Seoul and Washington agreed to work toward what they called a “July Package” before the waiver expires.

“Today’s talks served as a starting point to narrow the agenda and form a framework for future discussions,” Choi told reporters. Ahn described the meeting as “a very strong start.”

Officials pose for a photo during the South Korea-U.S. “2+2” economic talks at the U.S. Treasury Department in Washington, D.C., on April 24, 2025. From left are South Korean Trade Minister Ahn Duk-geun, Deputy Prime Minister and Finance Minister Choi Sang-mok, U.S. Treasury Secretary Scott Bessent, and U.S. Trade Representative Jamieson Greer./Ministry of Economy and Finance

The meeting began at 8 a.m. local time at the U.S. Treasury building and marked the first official round of the so-called “2+2” consultations involving both countries’ finance and trade ministers.

“We had a very successful bilateral meeting with the Republic of South Korea today,” Bessent told reporters at the White House. “We may be moving faster than I thought, and we will be talking technical terms as early as next week. South Koreans came early, they came with their A game.”

In the afternoon, Ahn held separate talks with Greer. Working-level discussions will begin next week, with multiple task forces to be formed. South Korea will also launch a dedicated economic and security task force, led by Prime Minister Han Duck-soo, to coordinate strategy.

Choi said he stressed Seoul’s willingness to cooperate on key U.S. priorities, including trade, shipbuilding, and energy.

He also urged Washington to lift the 25% product-specific tariff on Korean autos — a sector heavily impacted since the Trump administration imposed the duties.

“Automobiles and parts are critical, and we asked for swift resolution,” Ahn added, noting that U.S. officials “understood our concerns.”

He said the U.S. welcomed proposed cooperation in shipbuilding, where South Korean firms such as HD Hyundai plan to invest in U.S. facilities. Seoul also pitched broader collaboration on technology and workforce training.

South Korean Deputy Prime Minister and Finance Minister Choi Sang-mok, left, and Trade Minister Ahn Duk-geun hold a joint briefing at the South Korean Embassy in Washington, D.C., on April 24, 2025./Photo: Washington Press Corps

Ahn voiced caution about the viability of U.S. natural gas projects in Alaska, saying “business feasibility is difficult to assess at this stage” and that any decision to expand LNG imports would be made after careful review.

The two countries agreed to focus their talks on four key areas: tariffs and non-tariff measures, economic security, investment cooperation, and monetary policy. Greer is expected to visit South Korea for further ministerial talks during the APEC trade ministers’ meeting on May 15.

The two sides will address foreign exchange issues through a dedicated Treasury-to-Treasury channel. Choi said Bessent had initiated the conversation. The U.S. Treasury placed South Korea on its currency monitoring list in November 2024, and the Trump administration believes Seoul is keeping the won artificially low to boost exports.

Choi said defense burden-sharing and South Korea’s domestic political calendar, including the upcoming June presidential election, were not discussed during the talks.

He emphasized to U.S. counterparts that South Korea remains a “trusted partner” and stressed the need for “calm and orderly” negotiations, given the country’s ongoing leadership transition and necessary legislative procedures for any trade agreement.

The finance ministry said the talks were the “first official consultation on U.S. tariff policy” and were held in a “friendly atmosphere,” with both sides agreeing to continue working-level and high-level discussions.

[Kim Eun-joong (Washington)]

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