South Korea Seeks U.S. Tariff Exemptions Talks

South Korea’s top economic officials have formally requested exemptions from U.S. reciprocal and item-specific tariffs during high-level trade talks in Washington, as both nations work toward a potential agreement before a key deadline in July.

Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok and Minister of Trade, Industry and Energy Ahn Duk-geun made the appeal during a "2+2" meeting with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer. The discussions, held at the U.S. Department of the Treasury, marked the first formal consultation of its kind between the two nations.

Following the talks, Minister Choi told reporters that South Korea emphasized the potential negative impact of U.S. tariffs on bilateral economic relations. "We reached a consensus to develop a July Package aimed at eliminating tariffs before the current exemption expires on July 8," he said. The two sides also agreed to discuss four key areas: tariffs and non-tariff measures, economic security, investment cooperation, and monetary policy.

Political Challenges Loom Over Negotiations

However, a senior South Korean official acknowledged on Monday that reaching a comprehensive trade deal before the country’s snap presidential election on June 3 would be "theoretically impossible." Vice Minister of Trade, Industry and Energy Park Sung-taek cited political uncertainty as a limiting factor, given South Korea’s current caretaker government following the ouster of former President Yoon Suk Yeol.

"The U.S. side understands Korea’s unique political situation," Park said, adding that working-level talks would continue next week to outline the scope and methods for further negotiations.

The U.S. has prioritized trade discussions with key allies, including South Korea, Japan, and India, ahead of the July 8 deadline when reciprocal tariffs could be reinstated. South Korea has specifically sought exemptions for automobiles, steel, and other targeted goods while offering cooperation in shipbuilding, energy, and reducing trade imbalances.

Park also noted regulatory hurdles, such as the U.S. Jones Act—which restricts domestic shipping to American-built and crewed vessels—as an obstacle to deeper bilateral cooperation. Meanwhile, South Korea is considering sending a delegation to assess a proposed $44 billion Alaska liquefied natural gas project, a key U.S. priority.

Both nations plan to establish six working groups to address tariff exemptions, economic security, and investment, with discussions set to begin next week. Currency policy will be handled separately by financial authorities.

"Given the tight timeline, achieving meaningful progress within 70 days will be challenging," Park said. "We are navigating uncharted territory."