South Korea Seeks to Delay Tariffs Negotiations with U.S.

By Jihoon Lee and Joyce Lee
SEOUL (Reuters) – South Korea will seek to delay the implementation of tariffs as long as possible in negotiations with the United States, its finance minister said on Tuesday. Seoul is focused on cooperation in areas of mutual interest such as shipbuilding and energy.

Officials in Seoul are working to limit damage to their export-reliant economy from the impending duties.

South Korea is among the countries that U.S. Treasury Secretary Scott Bessent has indicated Washington will engage in discussions regarding the tariffs imposed by U.S. President Donald Trump.

Finance Minister Choi Sang-mok told parliament that the priority is to delay the tariffs “as much as possible” to reduce uncertainty facing the country’s businesses in the global market.

From a national interest perspective, Choi emphasized the need to negotiate thoroughly and finalize agreements under the new government.

Recently, Trump imposed 25% “reciprocal” tariffs on South Korea and other countries, targeting multiple imports with duties as high as 49%. Although the implementation has been paused for 90 days, a 10% blanket tariff on all goods remains, along with increased levies on China.

This tariff challenge arises as South Korea prepares for a snap presidential election on June 3, following the ousting of President Yoon Suk Yeol over his brief declaration of martial law. The current political vacuum raises questions about the authority of acting President Han Duck-soo and the government’s approach to Trump’s tariffs.

The government’s response includes high-level talks with U.S. officials. Han held a phone call with Trump last week, and South Korea’s chief trade envoy met U.S. Trade Representative Jamieson Greer to discuss tariff reductions.

Media reports suggest that Trade and Industry Minister Ahn Duk-geun may travel to Washington next week for further discussions.

Choi noted conversations between Trump and Han touched on mutual interests and cooperation in sectors like shipbuilding and a potential role in an Alaska gas pipeline project. Seoul has signaled openness to these areas, considering cooperation in shipbuilding a strategic asset in negotiations.

The task of negotiating a trade deal in light of Trump’s claims of unfair trade will fall to the new president following the June 3 election. The tariff pause does not affect the 25% duty on steel, aluminum, or vehicles, sectors in which South Korea is a significant exporter to the U.S.

Additionally, Seoul announced an increase in support for its semiconductor industry to 33 trillion won ($23.25 billion) amidst growing policy uncertainty regarding U.S. measures. Trump indicated that a tariff rate on imported semiconductors would be announced next week, noting that some flexibility may be offered to certain companies in the sector.