Korea to 'actively' negotiate on US steel, auto, reciprocal tariffs: trade minister

Trade Minister Cheong In-kyo speaks to reporters at Incheon International Airport, Tuesday, before departing for Washington for tariff negotiations with the U.S. Yonhap

Korea will "actively" negotiate with the United States to minimize the impact of U.S. tariffs on Korean industries and the economy, Trade Minister Cheong In-kyo said Tuesday as he headed to Washington for talks on U.S. trade policies.

"We have to negotiate on steel and auto tariffs during this U.S. visit as they are both major export items for Korea," Cheong told reporters, noting he will also work to identify Washington's tariff plans for semiconductor and other items.

Cheong is set meet with U.S. Trade Representative (USTR) Jamieson Greer and other officials during his two-day U.S. visit.

The trip marks the first of its kind by a senior Korean trade official since the Donald Trump administration announced country-by-country reciprocal tariffs, including 25 percent duties for Korea, set to take effect Wednesday (U.S. time).

"It is good news to hear that U.S. President Trump said he is open to tariff negotiations with countries other than China ahead of our visit to Washington," he added.

On Monday (U.S. time), Trump wrote on his social media account that negotiations with countries that have requested meetings will begin to take place "immediately," while warning China to withdraw its retaliatory tariffs against the U.S.

The message came after Beijing hit back at the U.S. with a planned 34 percent duty on U.S. goods as a countermeasure to the Trump administration's 34 percent reciprocal tariffs for China that come in addition to 20 percent import tariffs imposed earlier on Chinese goods entering the U.S.

Cheong said the government has been considering various measures to reduce Korea's trade surplus with the U.S. by importing more American goods, including liquefied natural gas (LNG).

The government will still raise the issue with Washington of the U.S. imposing hefty tariffs on Korea, which has been implementing an average tariff rate of less than 1 percent on U.S. imports under the countries' bilateral free trade agreement (FTA) that went into effect over 12 years earlier, Cheong added.

On speculation that the Korea-U.S. FTA may be amended, Cheong said the government is preparing for various scenarios, though the Trump administration has yet to mention any changes to the Korea-U.S. FTA, which was revised in 2018 at the request of the first Trump administration.

"I think there is no other nation that has a closer relationship with the U.S. Department of Commerce and the USTR than our country," Cheong said, vowing efforts to maximize Korea's national interest in tariff negotiations with the U.S. (Yonhap)