Korea, US ‘more likely’ to close tariff deal during APEC summit

Presidential chief of staff for policy Kim Yong-beom, right, speaks at Incheon International Airport, Sunday, after ending his business trip to the U.S. Yonhap

Korea became "more likely" to reach a detailed tariff agreement with the United States on the sidelines of the upcoming Asia-Pacific Economic Cooperation (APEC) summit later this month, presidential chief of staff for policy Kim Yong-beom said Sunday.

Upon returning from tariff negotiations in the U.S., Kim said the two countries made “practical advancements in most pending trade issues.”

“Our chances of clinching the follow-up trade deal with the U.S. have increased after our latest visit to the U.S.,” Kim told reporters. “We have shared a common view in most issues, but still have to narrow differences in one or two areas.”

Kim did not elaborate further, but reiterated that the two countries "mostly understood that the negotiations should generate reciprocal outcomes that Korea can withstand.”

Last week, U.S. Treasury Secretary Scott Bessent also expressed hopes for Korea and the U.S. to resolve their differences “in the next 10 days,” hinting at the possibility that both countries will clinch a detailed trade agreement soon.

Hyundai Motor CEO Jose Munoz shares the company's U.S. investment plan during the carmaker's CEO Investor Day in New York, Sept. 18 (local time). Courtesy of Hyundai Motor

With the presidential aide saying the latest negotiations were conducted in a "very constructive mood," the recent progress is raising hopes that Hyundai Motor and General Motors (GM) Korea will see an end in sight to their monthslong U.S. tariff pressure.

Korea and the U.S. have been locked in a trade stalemate since July 30 when they agreed to a broad tariff agreement. Under the deal, the U.S. decided to set its blanket tariff on Korea at 15 percent, down from 25 percent. Washington also promised to reduce its auto tariff imposed on Korean vehicles down to 15 percent.

The lowered auto tariff has not taken effect until now, as both countries have failed to make progress in their follow-up negotiations, leaving the two carmakers — both of which rely heavily on exports to the U.S. — highly vulnerable to the 25 percent tariff in place.

The U.S. demands Korea to make an upfront payment of $350 billion (498 trillion won) for investment in the U.S., while Korea shows differences in the financing of the fund.

Korea hopes to make smooth progress in narrowing the lingering differences ahead of the second summit between President Lee Jae Myung and U.S. President Donald Trump on the sidelines of the APEC summit in Gyeongju, North Gyeongsang Province. The meeting between Lee and Trump will be held around the end of this month.

Once the already-agreed-upon 15 percent auto tariff takes effect around the timeline, Hyundai Motor and GM Korea will be able to compete on an equal footing in the U.S. with their rivals from Japan and Europe.

Japan’s Toyoto Motor and most European carmakers are now paying a reduced U.S. tariff of 15 percent, while Hyundai Motor Group still faces the 25 percent tariff.

According to data from market tracker FnGuide, Hyundai Motor’s third-quarter operating profit is forecast to drop some 26 percent from a year earlier in the aftermath of the prolonged tariff shock.

Kia is also estimated to suffer an operating profit fall of more than 19 percent during the same period for the same regulatory risk.

Shinhan Securities analyst Park Kwang-rae, who estimated that Hyundai Motor’s third-quarter operating profit will fall 27 percent year-on-year, said the company’s 2026 operating profit is expected to drop at least 2.5 percent from a year earlier if the 25 percent tariff remains in place.

A faster settlement of the Korea-U.S. tariff negotiations is also crucial for the survival of GM Korea, as the carmaker exports more than 80 percent of cars produced here to the U.S. The carmaker has particularly been mired in repeated rumors of a potential exit from the Korean market after the U.S. tariff fears started escalating in April.

U.S. President Donald Trump's motorcade leaves a golf resort in Palm Beach, Fla., Saturday (local time). Yonhap

Korean conglomerate leaders’ recent U.S. visit also raises hopes that both countries are in the final stage of their trade negotiations.

Hyundai Motor Group Executive Chair Chung Euisun is known to have played golf with Trump on Saturday (local time) at the latter’s Mar-a-Lago resort in Palm Beach, Florida. Samsung Electronics Executive Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won and LG Group Chairman Koo Kwang-mo were also reportedly there.

Details of the outing remain unknown, but attention is on whether the Korean chairmen discussed issues related to the U.S. invitation for investments in chips, automobiles, batteries and shipbuilding, and subsequently asked for a prompt resolution to the tariff stalemate between the two countries.

This marks the first time that a group of Korean business tycoons have gathered to play golf with Trump.