Finance Chiefs of Two Countries to Meet on July 31 Amid Looming Tariff Deadline.

On the eve of the deadline (Aug. 1) for the United States to impose a 25% reciprocal tariff, the finance chiefs of South Korea and the United States are set for final negotiations in Washington, D.C. While there is no news of a deal yet, attention is focused on the possibility of a last-minute agreement as high-level negotiations between the two countries continue, linked to cooperation in the shipbuilding industry.

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-chul will meet with U.S. Treasury Secretary Scott Bessent in Washington, D.C. on July 31 (local time) to finalize trade issues. The meeting was originally scheduled for July 25 but was postponed due to Secretary Bessent's schedule. The two sides are expected to discuss not only mutual tariff issues but also overall economic cooperation between the two countries.

Earlier, Minister of Trade, Industry and Energy Kim Jung-kwan negotiated with U.S. Secretary of Commerce Howard Lutnick for two consecutive days on July 24 and 25th(local time) but failed to reach an agreement. The industry ministers of both countries met at the U.S. Department of Commerce building in Washington, D.C., and continued discussions the next day at Secretary Lutnick’s residence in New York. Yeo Han-gu, head of the Office of Trade Negotiations, was also present.

Although they failed to reach a conclusion, there are observations that cooperation in the shipbuilding industry could be a breakthrough in negotiations. The Korean government is focusing on last-minute persuasion by emphasizing industrial cooperation cards centered on the shipbuilding sector, which the United States desperately needs. It is known that the Korean government will present specific cooperation plans such as local construction, technology transfer, and human resource development, unlike Japan, which decided to invest directly in the local shipbuilding industry. The Presidential Office also emphasized on July 26, “We confirmed the U.S. side’s high interest in the shipbuilding sector and agreed to develop mutually agreeable plans including shipbuilding cooperation between the two countries.”

Issues such as investment, agricultural products, and digital trade are on the negotiation table. A comprehensive agreement, including the shipbuilding cooperation card, is expected to be reached at the meeting between Deputy Prime Minister Koo and Secretary Bessent. It is anticipated that they will make a final review of the issues discussed by working-level officials and make political decisions. The negotiations are drawing more attention as they will be held after the United States has signed trade agreements with the European Union (EU) and China in succession. A high-ranking government official said, “It’s difficult to predict the outcome of the negotiations, but we are doing our best to produce the best results.”

Source: Business Korea

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