US–South Korea tariff deal in doubt as Trump’s deadline approaches

South Korea’s new President Lee Jae Myung has acknowledged that it remains unclear whether Seoul and Washington can settle their high-stakes tariff negotiations before a deadline set by US President Donald Trump, as both sides struggle to reconcile competing demands. At his first news conference since taking office last month, Lee struck a cautious tone, saying talks with the United States were “clearly not easy” and that negotiators were still working to clarify their positions and define common ground. As per the Associated Press, Lee warned that it was impossible to guarantee an agreement before Trump’s deadline next week, even as both governments race to avoid punishing new tariffs on South Korean exports.

A deadline with big stakes

The sense of urgency stems from Trump’s 90-day pause on new “global reciprocal tariffs,” which is set to expire on July 9. Once that pause ends, South Korean goods could be hit with sweeping 25 per cent tariffs—posing a major threat to the trade-dependent economy. South Korean officials are particularly worried about the possibility of higher duties on critical sectors such as automobiles and semiconductors. According to the Associated Press, these industries are the backbone of the country’s exports and a vital source of jobs and growth.

Lee said it was essential to secure a “truly reciprocal outcome that benefits both sides,” but admitted the process was proving complex and politically sensitive. “It’s difficult to say with certainty whether we will be able to reach a conclusion by July 8. We are now doing our best,” he told reporters.

Trump’s tough stance

President Trump has championed his “America First” approach to trade, demanding what he calls fairer, more balanced deals with key partners. The Trump administration argues that some foreign producers have unfairly benefited from past trade rules at America’s expense. The Associated Press reports that Trump has also insisted on new tariff measures to stop companies from evading existing duties by shipping Chinese-made goods through third countries like Vietnam or South Korea.

Beyond tariffs, there are concerns in Seoul that Trump might use the trade negotiations to demand higher payments from South Korea to cover the cost of hosting 28,000 US troops on the peninsula forces seen as vital to deterring North Korean threats.

Lee’s cautious approach

Lee, who came to power after winning a snap election following the ouster of conservative President Yoon Suk Yeol, has sought to balance a firm defence of South Korea’s interests with a pragmatic approach to US ties.

The Associated Press notes that Lee has consistently urged patience in tariff negotiations, arguing that rushing into a deal could undermine the national interest. His trade minister, Yeo Han-koo, is reportedly arranging meetings in Washington with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick in a last-ditch bid to secure a compromise.

Broader diplomatic goals

While trade is dominating headlines, Lee also used his news conference to lay out his vision for improving relations with North Korea. According to the Associated Press, Lee pledged to restart long-dormant inter-Korean talks, despite acknowledging that deep-seated distrust would make quick progress difficult. He also proposed resuming more frequent summits with Japan and reaffirmed his intention to pursue “pragmatic diplomacy” that balances ties with the US, China, Russia and North Korea.

Lee’s government has already taken small steps to ease tensions with Pyongyang, halting anti-North propaganda broadcasts at the border and cracking down on activists who send leaflet balloons across the heavily fortified frontier.

A delicate balance

Lee’s challenge now is to secure a trade deal with Washington that shields Korean industry from crippling tariffs, while also managing an unpredictable relationship with North Korea and navigating Trump’s transactional approach to alliances.

As the tariff deadline looms, South Korea’s new president is walking a tightrope, seeking to avoid economic disruption while maintaining the country’s strategic security partnership with the United States.

(With inputs from the agencies)