Payam Javan: South Korea and the United States have agreed to negotiate a trade deal to exempt Seoul from U.S. tariffs before a 90-day tariff pause ends in July. The agreement was announced by South Korean Finance Minister Choi Sang-mok following talks with U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer in Washington. The deal, termed the “July package,” will focus on tariffs, economic security, investment, and monetary policies. Both sides expressed optimism, with Bessent noting that technical discussions could begin as early as next week, describing the talks as “very successful.”

South Korea raised concerns about the adverse impact of U.S. tariffs, particularly on its automobile sector, which faces a 25 percent tariff alongside steel and aluminum imports. The tariffs, announced by President Donald Trump on April 2, aim to address trade deficits and unfair practices but include a temporary pause for negotiations. South Korea, heavily reliant on exports to the U.S., emphasized the need for tariff exemptions to protect bilateral economic cooperation. The talks followed a phone call between Trump and South Korea’s acting President Han Duck-soo, where trade, LNG, and military cooperation were discussed, signaling a broader effort to strengthen the U.S.-South Korea alliance.