South Korea and U.S. Race Against Time to Seal Tariff Deal Before Deadline!

South Korean Deputy Prime Minister and Finance Minister Koo Yun-cheol held two-hour trade talks with U.S. Commerce Secretary Howard Lutnick on Tuesday in Washington. This crucial meeting is part of last-minute efforts to secure a tariff agreement ahead of the impending deadline.

The discussions began at 3 p.m. at the U.S. Department of Commerce, just three hours after Koo’s arrival in Washington. Korea’s Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo also participated in the talks, according to Korea’s Industry Ministry.

Koo is scheduled to meet with U.S. Treasury Secretary Scott Bessent on Thursday, marking what is expected to be the final round of negotiations before U.S. President Donald Trump’s tariff-pause deadline expires on Friday.

Upon his arrival in Washington, Koo told reporters that he would clearly outline Korea–U.S. economic cooperation initiatives, especially in sectors such as shipbuilding that are of significant interest to the U.S.

“We will spare no effort to ensure that the agreement serves the mutual interests of both nations,” Koo stressed.

Korea’s top negotiators are focusing on reducing the proposed 25 percent reciprocal tariffs and lowering rates on key exports such as automobiles and steel.

Japan and the EU have successfully negotiated an agreement to cap tariffs, including those on cars, at 15 percent. This figure has effectively become the benchmark for Korea’s negotiations. A deal concluded at a higher rate could significantly undermine Korea’s export competitiveness in the U.S. market compared to its EU and Japanese counterparts.

Leading business figures are also joining the government delegation in Washington to support the trade negotiations. Samsung Electronics Chair Lee Jae-yong has arrived in the U.S. capital, while Hyundai Motor Group Executive Chair Chung Euisun is set to depart for Washington on Wednesday. Hanwha Group Vice Chair Kim Dong-kwan has already joined the delegation to discuss the government’s proposed shipbuilding cooperation project with the U.S., dubbed “Make American Shipbuilding Great Again” or MASGA.

Reports indicate that the U.S. side is pressuring Korean trade officials to present their best and final offer. According to the Wall Street Journal, Lutnick urged Industry Minister Kim and Trade Minister Yeo during their meeting in Scotland to “bring it all,” adding that Trump still needed to be convinced of the necessity for a new agreement with Korea, given that he had already secured trade deals with other major partners, including the EU, Japan, and the United Kingdom.

South Korea is strategically leveraging its shipbuilding expertise and has proposed the MASGA project—a multibillion-dollar investment plan aimed at revitalizing the U.S. shipbuilding industry.