Donald Trump sends trade letter to South Korea

Donald Trump sends trade letter to South Korea

In a significant development in U.S.-South Korea trade relations, U.S. President Donald Trump has sent a trade letter to South Korea, as the 90-day pause on tariffs is set to expire on July 9. The letter, part of a broader effort to renegotiate trade terms, comes amidst ongoing talks between the two countries.

The letter, which was delivered on Monday, July 2, outlines the U.S. stance on several key issues, including digital regulation, agriculture, content restrictions, and defense costs. South Korea has been seeking an extension of the tariff pause, which was initially agreed upon in April, to continue negotiations on these critical areas.

One of the primary concerns for the U.S. is South Korea's proposed legislation to regulate giant tech companies, which the U.S. argues disproportionately targets American companies while exempting major Chinese digital giants. Additionally, the U.S. is pressing for better access to South Korea's agriculture, auto, and digital sectors, including its restrictions on beef imports and data policies.

South Korea, on the other hand, is seeking to "slow down" its antitrust legislation on tech giants in light of trade issues and its sensitivity. The country has also been cautious about opening up its agricultural market further, given domestic concerns following earlier negotiations.

The letter also touches on defense costs and foreign exchange policy, with discussions ongoing via separate finance and defense channels. The U.S. is seeking cooperation in AI, shipbuilding, and the Alaska LNG project, but South Korea has expressed caution about the feasibility of the latter project.

This move by Trump is part of a broader strategy to renegotiate trade deals with various countries. The 90-day pause on tariffs is set to expire on July 9, and the U.S. has indicated it will start delivering "letters" outlining tariff rates and/or deals with various countries. While some countries, like Canada and China, have reached agreements, many others, including South Korea, are still in the negotiation phase.

References:
[1] https://economictimes.indiatimes.com/tech/technology/big-tech-rules-agriculture-among-issues-in-us-trade-talks-with-south-korea/articleshow/122288643.cms
[2] https://www.aol.com/trump-trade-deals-announced-progress-100012946.html