U.S.-China tariff agreement sparks cautious optimism for Seoul-Washington talks

U.S. Secretary of the Treasury Scott Bessent and U.S. Trade Representative Jamieson Greer address the media after trade talks with China in Geneva, Switzerland, May 11, 2025. [REUTERS/YONHAP]

 
The recent agreement between the United States and China to significantly reduce mutual tariffs for a 90-day period is raising expectations that it may positively influence ongoing trade talks between Korea and the United States.
 
With tensions between Washington and Beijing easing for now, a ray of cautious optimism — that the move could create a more favorable atmosphere for Seoul-Washington negotiations — is arising among onlookers.
 
 
The shift from confrontation to compromise between the two global powers was “beneficial for Korea,” according to a senior official at Korea’s Trade Ministry on Monday.
 
The Korea International Trade Association also issued a statement welcoming the development, noting that reducing or deferring tariffs between the United States and China would reduce uncertainty and have a “positive effect” for Korea, whose economy heavily depends on intermediate goods exports.
 
Korea and the United States are currently in talks aiming for a “July package deal,” with a deadline set for July 8. This followed a “2+2 trade dialogue” held in the United States on April 24, where both sides narrowed the agenda to four key areas: tariffs and nontariff measures, economic security, investment cooperation, and currency and exchange rate policies. Working groups have been established to handle detailed discussions.
 

Trade Representative Jamieson Greer testifies during a hearing before the House Committee on Ways and Means at Longworth House Office Building on April 9 in Washington. [AFP/YONHAP]

 
Further progress is expected during the upcoming visit by Jamieson Greer, the U.S. Trade Representative (USTR) who played a key role in the U.S.-China deal. Greer is scheduled to attend the Asia-Pacific Economic Cooperation (APEC) trade ministers’ meeting in Jeju on May 15 and 16. The Korean government has indicated that it plans to use the opportunity to conduct an interim review of negotiations held so far.
 
However, with the United States quickly moving toward compromise with other partners such as Britain, China and India, observers say the pace of the Korea-U.S. talks may need to adjust. On May 8, Washington concluded its first trade agreement with Britain and reached a tariff-reduction deal with China shortly afterward. Reports also suggest the United States is nearing a basic agreement with India.
 
A senior Korean government official downplayed the need to rush, saying that while other countries are making progress, “none have achieved a final deal yet.”
 
“We will continue our negotiations at our own pace, after studying the situation in other countries very closely,” a government official said.
 

Supporters of Lee Jae-myung, presidential candidate of the Democratic Party, cheer during a campaign event in Seoul on May 12, 2025. [AP/YONHAP]

 
The government keeps caution ahead of the presidential election on June 3.
 
Japan, which is set for a third round of talks with the United States later this month, is also maintaining a cautious approach. Prime Minister Shigeru Ishiba said Sunday that Japan “should not compromise just because the deadline arrives.”
 
U.S. Commerce Secretary Howard Lutnick recently acknowledged that Washington would need to devote time to the consultations with Korea and Japan.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM WON [[email protected]]

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