Trump-style Trade Pressure Intensifies... Korea Initiates Package Deal Response

[Financial News] Donald Trump, the President of the United States, is increasing pressure by stating that the mutual tariff imposition scheduled for August 1 will be "actually enforced," while our government has also embarked on forming a full-fledged 'package deal.' They are preparing multi-layered negotiation cards, including easing agricultural imports, improving non-tariff barriers, and attracting private investment.

 Kevin Hassett, Chairman of the White House National Economic Council, warned in an interview with ABC News on the 13th (local time) that "President Trump will actually impose tariffs on August 1 if a sufficiently good agreement is not reached," and "although discussions are ongoing, if it is judged that there is a lack of agreement, (tariffs) will become a reality."
 On the same day, President Trump claimed that Korea wants to conclude the negotiations. He met with reporters at Joint Base Andrews in Maryland, saying, "The European Union (EU) wants to open their countries. Everyone is changing their ways very quickly, and Korea wants to conclude the negotiations," adding, "As you know, Korea is paying significant tariffs."
 While the United States continues to pressure for a negotiation conclusion, the Korean government has begun to devise a strategic 'give-and-take' plan to secure practical benefits.
 Han-Koo Yeo, Head of the Trade Negotiation Headquarters at the Ministry of Trade, Industry and Energy, met with reporters at the Sejong Government Complex on this day, stating, "The remaining time until August 1 is a time for us to choose and decide," and "now is the time to prepare for negotiations to find a 'landing zone (agreement point).'"




 Currently, the government maintains the position that the 25% mutual tariff and item-specific tariffs imposed by the United States are very unreasonable measures and should be abolished or reduced for future Korea-U.S. relations. In particular, considering that the U.S. is focusing on reviving its manufacturing industry, they have proposed a 'Manufacturing Renaissance Partnership' to strengthen manufacturing cooperation between the two countries.
 Director Yeo stated, "The main game has started now," explaining, "The United States has a strong will to fundamentally change the trade deficit structure with countries including Korea. There is also a perspective that regulations or systems obstructing exports to Korea need improvement."
 Regarding non-tariff barriers, such as agriculture and digital sectors, which the U.S. has continuously raised issues about, he suggested the possibility of some concessions, stating, "While we must clearly protect what needs to be protected, there is room to view it flexibly from the perspective of consumer welfare and system improvement."
 In particular, they are highlighting the potential for both countries to expand the market together in fields such as semiconductors, artificial intelligence (AI), and private investment.
 Director Yeo emphasized, "AI is unique to the U.S., and Korea also sees AI as a key industry under the new government," adding, "If Korean companies enter the U.S. market, the overall pie can grow."
 The government is also actively considering using private investment as a major leverage in negotiations. He added, "Our companies have been exploring various strategies in line with changes in the U.S. political and economic environment, and the government is also discussing regulatory relaxation and institutional support measures accordingly."
 Regarding the possibility of newly established item-specific tariffs related to semiconductors being discussed recently in the U.S., he stated, "We have clearly conveyed concerns about items that may be imposed in the future."
 Meanwhile, concerning the Alaska liquefied natural gas (LNG) gas field in the U.S., it is reported that the Korean side has requested commercial data for feasibility review, and the U.S. side is preparing it. This is also likely to be discussed as one of the package negotiation items.



aber@fnnews.com Park Ji-young, Hong Chang-ki Reporter