The Lee Jae Myung administration is spurring its tariff negotiations with the United States as the July 8 deadline for the so-called "July package" fast approaches.
 
Rising uncertainty stemming from the recent U.S. strike on Iranian nuclear facilities has become a key variable in the process.

On Sunday, Yeo Han-koo, Korea’s trade representative and head of the Trade Negotiation Division at the Ministry of Trade, Industry and Energy, departed for Washington for ministerial-level talks on U.S. tariff measures.
 
“We will accelerate negotiations with a focus on pragmatic diplomacy that prioritizes the national interest, aiming for a mutually beneficial outcome,” Yeo said, speaking to reporters at Incheon International Airport.
 
Yeo and the Korean delegation are scheduled to meet with Jamieson Greer of the Office of the U.S. Trade Representative (USTR), Commerce Secretary Howard Lutnick and other officials in Washington to request exemptions from U.S. tariffs and support for Korean companies operating in the United States.
 
If no agreement is reached by July 8, steep duties could be reimposed on July 9.

“Given the volatile political and economic situation in the United States, it’s difficult to predict how things will unfold in early July,” Yeo said.

“Some concessions in the negotiation process may be inevitable, but the lack of time for domestic consensus-building is a reality,” said Heo Yoon, a professor at Sogang University’s Graduate School of International Studies. “The United States tends to negotiate in a top-down manner under President Donald Trump, so it’s unclear how thoroughly it will consider Korea’s concerns.”

The United States recently called on NATO countries to increase their defense spending to 5 percent of their GDP, and some observers believe Washington will pressure Seoul to reduce its trade surplus with the United States by increasing defense spending and purchasing advanced U.S.-made weaponry, including fighter jets.
 
The delegation also plans to lobby the U.S. Congress for support in ensuring that Korean companies investing in the United States can operate stably, in light of the proposed revision to the Inflation Reduction Act that may reduce tax credit benefits currently received by Korean firms.

Working-level officials from the Lee administration’s U.S. negotiation task force will accompany the delegation and hold a third round of technical discussions with the USTR. The talks will focus on identifying mutually acceptable negotiation points across key interest areas.
 
Yeo also addressed concerns regarding the U.S. government’s recent position that it may restrict Samsung Electronics and SK hynix from supplying U.S.-made equipment to their semiconductor factories in China.
 
“We will fully convey our industry’s concerns and do our utmost to explore constructive ways forward,” he said.
 
On June 12, Jeffrey Kessler, U.S. Assistant Secretary for Industry and Security at the Department of Commerce, stated during a House hearing that “the effectiveness of export controls on China has been severely weakened because of allies such as Japan and Korea.”

Subsequent reports suggested the United States is preparing to revise this policy.
 
Until now, Samsung Electronics and SK hynix have been able to export U.S.-made semiconductor equipment — excluding some cutting-edge technologies — to their Chinese factories under Verified End-User status, which is granted by the U.S. government. The Trump administration is now reportedly considering eliminating that exemption.
 
Samsung produces approximately 40 percent of its NAND flash memory, and SK hynix produces around 40 percent of its DRAM and 20 percent of its NAND in China.
 
When asked whether they had received an official notice from the U.S. government, both companies declined to comment, but are said to be closely monitoring developments in Washington.

Source: Korea Joongang Daily

• USTR Makes Findings and Proposes Action in 60 Section 301 Investigations Relating to Failures to Take Action on Trade in Forced Labor Goods
• [VCCI] The US officially initiates a Section 301 Investigation into Vietnam on Intellectual property
• General Secretary and President To Lam's working visit to three ASEAN countries: Demonstrating the stature of proactive and constructive diplomacy.
• Viet Nam accelerates innovation drive as skilled workforce becomes key to science and technology growth
• The US is increasing controls on AI chip exports