South Korea is not impressed with the auto tariff cut time. The pace of advancement in international relations is frequently slower than what the headlines indicate. A complex web of policy specifics, political timing, and national interest underlies each handshake, picture opportunity, and signed agreement. Around the world, sectors wait for results as deals are announced and expectations are raised. But occasionally, important issues can stay unresolved even after the conversations appear to be moving in the right direction. The final line remains hidden, but the suspense grows.
Amid trade tensions, South Korea seeks to negotiate a reduction in auto tariffs with the U.S.
South Korea’s Industry Minister Kim Jung-kwan said on Wednesday that Seoul needs to hold further discussions with Washington on the timing of the promised tariff cuts on the country’s car exports to the U.S. from the current level of 25%. President Donald Trump said last week that the U.S. will charge a 15% tariff on imports from South Korea. This has affected not only Korea, but many countries have been pinched because of such decisions.
Including autos as part of a deal that eases tensions with a top-10 trading partner and key Asian ally. The 15% U.S. tariffs on most items coming from South Korea are due to take effect starting from Thursday. South Korean auto makers such as Hyundai Motor 005380.KS and Kia 000270.KS wants the tariff cut brought in swiftly to create a level playing field with Japanese and European rivals.
Japan and South Korea promise continued tech and trade talks and press the U.S. for auto tariff cuts
Separately, Japan’s top tariff negotiator, Ryosei Akazawa, said he would head to Washington this week to press Trump to sign an executive order to bring the cut to tariffs on Japanese auto imports into effect. In the technology sector, Kim said the countries had agreed to continue talks on online platform legislation to make sure U.S. tech companies were not unfairly treated compared with domestic firms.
He said at a parliamentary session,
“Although the digital issue was not included in the latest agreement, there are major concerns about it among the U.S. government, parliament and businesses.”
The minister reiterated that there had been no agreement on the opening of the agriculture market, including beef, rice, fruit, and other farm goods as part of the deal. But he said the countries will increase cooperation in the quarantine process for fruit and vegetables, which has been cited by Washington as one of the non-tariff barriers that U.S. farmers face.
This delay is important for both nations for this important reason
For automakers, this is more than simply a trade concern. It’s a part of a larger conversation about economic cooperation in a world that is changing. Although South Korea and the US have been close economic partners for a long time, recent global events, such as supply chain disruptions and domestic political pressures, have made even long-standing alliances more challenging, and now the US and Korea head to a summit with trade issues unresolved.
South Korean Finance Minister Koo Yun-cheol said at a separate parliamentary session that the U.S. viewed the quarantine process for fruit and vegetables as too slow and asked Seoul to introduce a rational and scientific process. It has not ended yet; South Korean officials again meet the U.S. Commerce Secretary to advance tariff talks. A deadline might reduce tension and boost trust between the two nations if it is confirmed quickly. If not, it runs the risk of becoming just another unsolved problem at a time when there are already many unknowns in the global economy.
GCN.com/Reuters