South Korea seeking extension to US 90-day tariff pause

[SEOUL] South Korea will seek an extension to the 90-day pause in US tariffs that is set to expire next week, as negotiations are likely to continue past the deadline set between Seoul and Washington, a senior South Korean trade official said on Monday (Jun 30).

South Korea’s new administration held its first senior-level trade talks with the US last week, and a third round of working-level technical discussions since the two countries agreed in late April to craft a trade package reducing US tariffs before the US 90-day pause ends on July 9.

“It seems some countries will reach a deal by July 8, some might be granted an extension to continue negotiations, while others will decide if they want to continue negotiating under tariffs or not,” the official told a briefing.

“We will do our best to be granted by July 8 an extension to continue negotiations,” the official said, adding that the US is expected to make a decision on a further extension on the day.

During the talks last week, the US mainly raised issues related to South Korea’s non-tariff barriers, as South Korea already imposes nearly zero tariffs on US imports under a free trade agreement, the official said.

Other issues of foreign exchange rates and defence costs are being discussed via separate channels, the official said. Some 28,500 US troops are stationed in South Korea as a deterrence to North Korea, and US President Donald Trump has often complained about the cost-sharing arrangement. REUTERS