[fn Editorial] Tariff Negotiations: Scratch Where It Itches, But Maximize Practical Benefits

The final negotiations are in the countdown ahead of the August 1 deadline for imposing reciprocal tariffs (25%). Our goal is to reduce the U.S. announced 25% to at least the level of Japan and the European Union (EU) at 15%. If we can ambitiously bring it down to the 10-14% range, it would be ideal. Donald Trump, the U.S. President, issued a 'final ultimatum' that countries that do not reach a trade agreement by August 1 will face reciprocal tariffs of 15-20%. He is threatening to unleash a 'big gift package' favorable to the U.S. or face a tariff bomb. Our trade team is making an all-out effort to conclude the trade negotiations. In basketball terms, they are putting all their energy into a 'buzzer beater' (a shot taken at the buzzer sound signaling the end of the game).

Kim Jeong-gwan, Minister of Trade, Industry and Energy, and Yeo Han-gu, head of the Trade Negotiation Headquarters, are leading the trade team, closely following key U.S. figures like Howard Lutnick, the Secretary of Commerce. They have met several times, both officially and unofficially, wearing down the threshold of Washington DC offices and New York residences. On the 27th (local time), they flew to Scotland to conduct additional negotiations with Secretary Lutnick, who was accompanying President Trump for EU negotiations. Deputy Prime Minister Koo Yoon-chul, who is in charge of overseeing the trade negotiations, headed to Washington DC on the 29th to finalize the negotiations with U.S. Treasury Secretary Scott Besant on the 31st (local time). Deputy Prime Minister Koo said, "I will do my best to ensure that a negotiation plan is prepared that allows Korea and the U.S. to coexist based on national interest." There is a sense of determination to find the optimal combination that allows both Korea and the U.S. to win. It is known that we are mobilizing all available 'cards' to conclude the negotiations. The trade team reportedly proposed a massive Korea-U.S. shipbuilding cooperation project called 'MASGA (Make American Shipbuilding Great Again)' during negotiations at Secretary Lutnick's New York residence, drawing a positive response from the U.S. side. 'MASGA' means 'Make American Shipbuilding Great Again', derived from President Trump's core slogan 'MAGA'. It is said to have faithfully reflected the U.S. demand for Korean investment in the U.S., excellent shipbuilding capabilities, technology transfer, and talent development, as the U.S. urgently needs to rebuild its shipbuilding industry to win the U.S.-China hegemony competition. The U.S., which advocates a 'nuclear renaissance' with plans to build 10 nuclear power plants by 2030 and quadruple power generation capacity by 2050, is also discussing collaboration with Korea's top-level nuclear technology, which is likely to be enticing. Opening the Korean agricultural and livestock market is still one of the options. The jackpot of Samsung Electronics' 23 trillion won foundry order from Tesla that broke out the day before is also seen as a 'preview' of future U.S. investment expansion and could act as a leverage for semiconductor tariff negotiations. The Alaska liquefied natural gas (LNG) collaboration is also an open card. As the saying goes, 'the devil is in the details', it emphasizes the importance of scratching where it itches in the U.S. until the last minute while maximizing our practical benefits.