South Korea rules out tariff deal with US before Jun 3 snap election

SEJONG, South Korea: A senior South Korean government official ruled out on Monday (Apr 28) that Seoul would agree to a trade package with Washington by the time the country holds a presidential election on Jun 3, and flagged challenges to reaching a deal even before early July.

The countries last week agreed to craft a trade package aimed at removing new US tariffs before a pause in reciprocal tariffs is lifted on Jul 8, Seoul’s delegation in Washington said after their first formal tariff talks on Thursday.

Political analysts noted, however, it may be difficult for South Korea to make any firm commitment on big energy projects and defence costs as it currently has an acting president in power.

South Korea will hold a snap election on Jun 3 after former President Yoon Suk Yeol was ousted for his role in imposing martial law briefly in December.

It is “theoretically impossible” for the two countries to decide on a comprehensive trade package by late May or early June, Park Sung-taek, Vice Minister of Trade, Industry and Energy, told reporters.

“We fully explained our political situation to the US during our latest talks. The US side also understands that Korea’s special political situation could be a limiting factor in negotiations.”

The United States has prioritised talks with key trading partners and allies like Japan, Korea and India, as Washington is scrambling to seal a flurry of trade deals before its Jul 8 deadline.

“We all are taking the uncharted territory,” Park said.

“To be honest, I think it would be very challenging for the talks to bear some fruit within the next 70 days despite President Trump’s expectations,” he said.