'July package' with US remains elusive as Lee-Trump meeting stalls

Trade Minister Yeo Han-koo speaks to reporters after arriving at Washington Dulles International Airport in Virginia, Sunday (local time), for high-level trade talks with officials in the United States. Yonhap

Uncertainty is growing over whether Korea and the United States will reach a tariff deal by July 8 — the day the pause on U.S. "reciprocal" tariffs ends — as Korea’s top negotiator remains skeptical of the plan devised by the previous administration and a meeting between the two countries’ leaders has stalled once again.

Departing for Washington on Sunday, Trade Minister Yeo Han-koo told reporters the "July package" is now meaningless, citing unstable political and economic conditions in the U.S.

His remarks contrasted with what the two countries agreed on during high-level talks in April. At the time, they agreed to pursue a package deal by July 8 for exemption of Korean products from U.S. "reciprocal" and item-specific tariffs.

"With the launch of the new government, our position on these negotiations has become clear," Yeo said after arriving in the U.S. "We do not need to be bound by the deadline."

Yeo is scheduled to stay in Washington for a week to meet senior U.S. government officials and lawmakers, as well as with think tanks and industry insiders. This marks the first visit by a high-level Korean government official to the U.S. since President Lee Jae Myung took office on June 4.

When asked about the possibility of another delay for U.S. tariffs, Yeo said it is difficult to predict at this time.

"We are open to all possibilities," he said.

U.S. President Donald Trump unveils tariffs in the Rose Garden at the White House in Washington, April 2. Reuters-Yonhap

His cautious stance aligns with Lee’s approach to U.S. tariff talks.

During the election campaign, Lee repeatedly expressed his intention to delay signing the July package, saying Korea does not need to reach an agreement ahead of other countries.

Although the presidential office said June 6 that a phone call between Lee and U.S. President Donald Trump included an agreement to work toward a swift tariff deal, a face-to-face meeting has been delayed amid the White House’s silence on details of the conversation.

After Lee’s planned meeting with Trump at the G7 summit in Canada fell through last week following the U.S. leader’s early departure, the Korean president decided Sunday to skip the NATO summit in the Netherlands this week. Japan’s Nikkei reported that Trump had sought a separate meeting with Lee on the sidelines of the upcoming event.

Opposition parties criticized Lee for missing an opportunity to gauge Trump’s thinking on tariffs, but the presidential office said it would be difficult to have in-depth talks about tariffs during the NATO summit.

Some experts also believe Korea and the U.S. need more time for working-level talks.

"Japan has yet to reach a tariff deal with the U.S., even after Prime Minister Shigeru Ishiba met Trump several times," said Chang Sang-sik, head of the Institute for International Trade at the Korea International Trade Association. "Even if the two countries’ leaders meet right now, an early agreement on tariffs seems unlikely."