High-Stakes Trade Talks: Can South Korea Dodge U.S. Tariffs?

South Korea’s top economic officials held crucial trade talks with U.S. Commerce Secretary Howard Lutnick, as announced by Seoul’s Ministry of Economy and Finance on Wednesday. The discussions took place just days before the looming deadline for new U.S. tariff measures.

According to the ministry, Finance Minister Koo Yun-cheol, Industry Minister Kim Jung-kwan, and Trade Minister Yeo Han-koo met with Lutnick in Washington on Tuesday. The two-hour meeting focused on bilateral trade issues.

The talks come at a critical juncture as the United States prepares to impose reciprocal tariffs, potentially including a 25 percent duty on South Korean goods, starting Friday. Both sides are racing against time to reach a last-minute agreement.

In a potentially positive development, U.S. President Donald Trump indicated on Monday that Washington is considering tariff rates between 15 percent and 20 percent for countries that have not yet finalized trade deals with the U.S.

The Wall Street Journal, citing a source familiar with the discussions, reported that Lutnick had previously urged South Korean officials to bring their best and final offer to the table during a separate meeting in Scotland. Following their talks in Washington last week, Kim and Yeo had flown to Scotland to continue negotiations with Lutnick.

As other major economies have secured trade agreements with Washington, South Korea—whose economy heavily relies on exports—has intensified its diplomatic efforts. The country is seeking either an exemption from or a reduction in the scope of the planned duties.

The ministry also announced that Koo is scheduled to meet with U.S. Treasury Secretary Scott Bessent in Washington on Thursday (local time).

Upon his arrival in Washington on Tuesday, Koo reaffirmed the government’s commitment to resolving the issue through diplomatic channels. He highlighted a new investment initiative aimed at strengthening bilateral cooperation.

The initiative, tentatively titled “Make American Shipbuilding Great Again,” envisions substantial South Korean investments in the U.S. shipbuilding sector. This forms part of broader efforts to revitalize American industry in the face of rising competition from China.

“We will thoroughly explain key areas of Korea-U.S. economic cooperation, including shipbuilding, and conduct negotiations centered on our national interest,” Koo told reporters.