Korea-US '2+2 Trade Talks' Start On 24th... Korea Responds With Trade Surplus Reduction Instead Of Tariffs

Scheduled Korea-U.S. trade meeting on the 24th (Source: Hankyung)

Korea and the United States will hold a ‘2+2 trade consultation’ at the minister level of finance and trade in Washington DC on the 24th (local time) to start full-scale tariff coordination. This is the starting point for practical negotiations to mitigate reciprocal and product tariffs imposed or announced by the U.S. on Korea, following the first tariff negotiation with Japan.

This meeting was promoted at the request of the U.S. On the Korean side, Deputy Prime Minister and Minister of Strategy and Finance Choi Sang-mok and Minister of Trade, Industry and Energy Ahn Duk-geun will attend, while on the U.S. side, Treasury Secretary Scott Besant and USTR Representative Jamieson Greer will participate.

The core of the bilateral consultation is the plan to reduce Korea's trade surplus with the U.S. of $56.6 billion recorded last year. To this end, the Korean government plans to respond with measures such as expanding the purchase of U.S.-made LNG and commercial aircraft. Additionally, the main goal of the Korean side is to ease the high tariffs imposed on exports such as automobiles and semiconductors, to which the U.S. has been sensitive.

Regarding this issue, Acting President Han Duk-soo said in an interview with the Financial Times (FT), “Korea will seek cooperative solutions with the United States rather than confronting U.S. tariffs head-on.”

The government is also showing a flexible attitude towards discussions to resolve non-tariff barriers demanded by the U.S., such as automobile emission regulations, restrictions on imports of U.S. beef, and shipbuilding cooperation. Military and industrial cooperation, including joint construction of U.S. military ships and training shipbuilding personnel, is also under consideration.

However, the government defines this meeting as a ‘consultation’ rather than an official ‘negotiation’ and aims for mutual agenda coordination rather than a hasty agreement. Minister Ahn Duk-geun noted, “We are mindful of the possibility that the situation could develop similarly to the case with Japan,” and did not rule out the possibility of direct intervention by President Trump.

The government also clearly stated that it would respond separately to the defense cost-sharing issue from the trade negotiations. Since the defense cost agreement has already been ratified by the National Assembly, it is difficult to accept any additional increase.

Regarding the Alaskan LNG project, in which the U.S. is requesting Korean participation, the government indicated that while it is possible to consider it from an energy security standpoint, it is not a card for tariff negotiations. The Korean stance is becoming clear that a ‘one-stop package negotiation’ that entangles tariffs, security, and energy fields cannot be accepted.