South Korea’s Trade, Industry and Energy Minister Ahn Duk-geun (right) arrives at Incheon International Airport on April 23, 2025, as he departs for Washington for finance and trade ministers’ talks with the U.S.
Jung Yeon-je | Afp | Getty Images
South Korea has asked for “calm” and “orderly” discussions with the U.S. on trade issues, as Asia’s fourth largest economy reportedly seeks to work out a deal with the U.S. by July to avoid tariffs.
In the so-called “2+2” talks in Washington, D.C., on Thursday, South Korean Finance Minister Choi Sang-mok and Trade, Industry and Energy Minister Ahn Dukgeun met with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer.
According to South Korean media outlet Yonhap, Choi told reporters that further talks will focus on four categories: tariff-and non-tariff measures; economic security; investment cooperation; and monetary policies.
A readout from South Korea’s Ministry of Finance said Choi proposed to seek mutually beneficial solutions for both countries, as well as communicated South Korea’s concerns about tariffs, according to a CNBC translation.
The deal will reportedly be pursued by July 8, the day U.S. President Donald Trump’s 90-day tariff suspension is due to end.
Choi also emphasized in the Thursday talks that South Korea is a “reliable partner.”
Ahn proposed measures such as a contribution by both sides to the reconstruction of the U.S. shipbuilding industry, sustainable and balanced South Korea-U.S. trade, and strengthening South Korea’s energy security.
He requested reciprocal and item-specific tariff exemptions for South Korea, the readout said. Both sides decided to continue holding working-level meetings and more high-level discussions in the future, it added.
Though South Korea, like most other countries, has been temporarily spared the “reciprocal” tariffs, the country still faces a 25% levy on steel and aluminum imports to the United States, as well as another 25% on automobile imports, which are some of the country’s largest exports to the U.S.
South Korea’s Hyundai and Kia are among the top eight bestselling brands in the U.S, according to car marketplace Carpro. The country is also the fourth largest exporter of steel to the U.S. in 2024, according to the International Trade Administration under the U.S. Commerce Department.
In a Thursday note, ANZ said “While South Korea has good odds of negotiating a trade deal with the US, its electoral calendar may extend the timeline for a comprehensive agreement. A new government will be in place following the 3 June election and its stance will likely shape the outcome of negotiations.”
South Korea will head to the polls on June 3 to pick a new president. The country’s Constitutional Court removed then president Yoon Suk Yeol from office on April 4 over his short-lived declaration of martial law.
— CNBC’s Blair Baek contributed to this report.