South Korea’s top trade envoy, Cheong In Kyo, expressed optimism on Thursday regarding US President Donald Trump’s decision to temporarily pause tariffs, which he views as an opportunity for further negotiations. The move came after South Korea’s trade representatives met with US officials to discuss reducing the tariffs imposed on the country.
Cheong’s visit to Washington followed President Trump’s announcement of a 25% tariff on South Korean goods as part of a broader set of tariffs on multiple countries. However, in a surprising reversal, Trump announced a 90-day suspension of some tariffs, providing a temporary reprieve for South Korea. This development allows the country some breathing room to engage in discussions with the US to address the issue, particularly as South Korea’s economy is highly reliant on exports.
The South Korean trade envoy characterized the tariff suspension as a positive step, though he stressed the need for rapid consultations with Washington to minimize any adverse effects on the nation’s exports, particularly to China. Finance Minister Choi Sang-mok also noted that the impact of the tariff shock had been somewhat alleviated for now, following the news of the tariff pause.
However, several tariffs remain in place, including a 10% base tariff for all countries, along with a 25% tariff on key South Korean export items such as cars, auto parts, steel, and aluminum.
In addition, Trump recently held a discussion with South Korea’s interim leader Han Duck Soo to explore opportunities in shipbuilding and potential energy deals, which the US president described as a “great call.” South Korea hopes this dialogue will create favorable conditions for continued negotiations on tariff reductions.
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