Seoul, Washington Tariff Negotiations Stall

(MENAFN) Discussions between South Korea and the United States on trade duties concluded without a breakthrough, as renewed tariff frictions resurfaced, South Korean outlets reported on Saturday.

South Korea’s Industry Minister Kim Jung-kwan and US Commerce Secretary Howard Lutnick held meetings for a second consecutive day on Friday, as reported by a news agency.

Speaking to journalists following the talks, Kim said, "Our understanding of each other's positions has deepened. There were discussions on how to find a middle ground," adding, "We need more talks. We have not yet reached a conclusion.”

However, Kim declined to disclose specifics regarding the implementation timeline of the new US tariffs, noting that "negotiations are ongoing."

Earlier in the week, US President Donald Trump declared an increase in tariffs on South Korean exports, alleging that Seoul’s parliament had failed to ratify a previously negotiated trade arrangement.

He stated that duties on automobiles, timber, and pharmaceutical products would climb from 15% to 25%.

Trump appeared to be alluding to a proposed investment bill that the governing Democratic Party intends to examine and put to a vote next month, while aiming to secure cross-party backing from opposition lawmakers.

In November, Seoul and Washington finalized a memorandum of understanding that formalized South Korea’s $350 billion investment commitment in return for reduced US trade duties.

According to the pact, South Korea is expected to channel $200 billion through direct cash contributions, limited to $20 billion per year, in addition to allocating $150 billion toward joint shipbuilding initiatives. In exchange, Washington lowered reciprocal tariffs on South Korean imports to 15%, consistent with an agreement reached in July.

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