Korea, US to continue trade talks Friday as no deal reached after 80-minute meeting

Industry Minister Kim Jung-kwan, right, and Trade Minister Yeo Han-koo, second from right, talk with U.S. Commerce Secretary Howard Lutnick, left, at the U.S. Department of Commerce in Washington, Thursday (local time). Courtesy of Ministry of Trade, Industry and Energy

The Korean minister of industry and the United States secretary of commerce will hold another meeting in Washington on Friday (local time), as trade negotiations a day earlier ended without any tangible outcome, leaving the two countries' tariff agreement unresolved ahead of the Aug. 1 deadline.

Sensitive matters, including an increase in Korean imports of U.S. agricultural products, are now on the table as Seoul makes a final push to cut Washington's forthcoming "reciprocal" duties and item-specific tariffs already imposed on cars and steel.

However, the Donald Trump administration continues to demand greater investment in the U.S. and reduced trade barriers.

Presidential Chief of Staff for Policy Kim Yong-beom said Friday that Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo will remain in Washington to continue talks with U.S. Secretary of Commerce Howard Lutnick and U.S. Trade Representative Jamieson Greer.

“They agreed to hold another meeting in the U.S. on Friday,” Kim told reporters after an emergency meeting of top economic and security officials to discuss trade negotiation strategies. He added that U.S. agricultural imports have also been discussed during the talks, though he did not specify which products.

The two ministers met with Lutnick the previous day to explore ways to reach a tariff agreement.

According to the Ministry of Trade, Industry and Energy, the industry minister strongly advocated for lower tariffs, referencing potential cooperation between the two countries in shipbuilding, semiconductor and battery industries.

Both sides also reportedly reaffirmed plans to continue discussions soon, aiming for a mutually beneficial agreement by Aug. 1, when a 25 percent “reciprocal” tariff on Korean products is scheduled to take effect in the U.S.

“We are fully committed to making sure our companies are not at a disadvantage against competitors from other countries,” the industry minister said in a press release. “The trade delegation will do everything it can to secure the best outcome for Korea’s national interest by Aug. 1.”

The meeting followed last-minute cancellations this week of a planned face-to-face meeting in Washington between Korea’s top security adviser and his U.S. counterpart, as well as the so-called “two-plus-two” high-level talks involving both countries’ finance and trade officials in the U.S. capital.

Because the U.S. did not call off the meeting with the Korean industry minister while he remained in Washington, there had been cautious optimism that the two sides might close the gap in negotiations. However, Washington has not commented on the outcome, while Seoul stressed the depth of the discussions.

Before the meeting, Lutnick even ridiculed Korea, mentioning a tariff deal signed earlier in the week with Japan.

“You could hear the expletives coming out of Korea when they read the Japanese deal, because the Koreans and the Japanese, they stare at each other,” Lutnick said in a CNBC interview. “You can imagine what they were thinking when they saw Japan make that deal. They were like, ‘Oh, man,’ and of course, they’re going to be in my office today talking.”

After the meeting, Lutnick again referenced the agreement with Japan on social media, highlighting Japan’s pledge to invest $550 billion in the U.S.

A miniature model of U.S. President Donald Trump, the Korean flag and the word "tariffs" are seen in this photo taken Wednesday. Reuters-Yonhap

Trump also said Thursday that he would let other countries “buy it down,” if they sought reduced tariff rates by promising substantial investments.

Bloomberg, citing people familiar with the matter, reported that Lutnick floated a $400 billion investment goal during talks with Korea, presenting it as a route to lowering U.S. tariffs on Korean automobiles.

With mounting pressure, Seoul is reportedly considering a proposal for at least $100 billion in total U.S. investments by major Korean firms.

Still, skepticism remains about whether Korea can strike a tariff deal by Aug. 1, as Trump will visit Scotland from Friday to Tuesday. U.S. Treasury Secretary Scott Bessent, who is overseeing tariff negotiations, may accompany the president on the trip.

"Given that Bessent is scheduled to hold additional tariff negotiations with China in Stockholm from July 28 to 29, there are doubts about whether the final tariff talks between Korea and the U.S. can be properly concluded within the deadline," iM Securities analyst Park Sang-hyun said.

National Security Adviser Wi Sung-lac, who attended Friday’s emergency meeting, dismissed concerns about a rift between Korea and the U.S., emphasizing that the two countries’ discussions on security issues have been easier than those related to tariffs and investments.