U.S. officials plan to conduct staggered trade negotiations using a new template that sets common terms for many of the talks, according to people familiar with the plans. - WSJ

U.S. officials plan to conduct staggered trade negotiations using a new template that sets common terms for many of the talks, according to people familiar with the plans. - WSJ

The U.S. and South Korea are set to engage in a series of trade negotiations, with a focus on auto tariffs and potential defense cost discussions, according to recent statements from South Korean officials. The talks come amidst ongoing global trade tensions and a backdrop of U.S. trade policies that have significantly impacted South Korea's exports.

South Korea's Industry Minister Ahn Duk-geun announced that Seoul is prepared to seek a speedy solution over auto tariffs in trade talks with U.S. counterparts, emphasizing the need for swift action due to the immediate impact on the country's auto sector [1]. The U.S. has introduced 10% blanket tariffs and 25% auto and steel tariffs, which have been paused for 90 days for South Korea. Ahn also mentioned that South Korea is prepared for the possibility that the issue of defense costs related to the presence of U.S. troops in the country could become part of the talks [1].

The trade talks, scheduled for Thursday, April 25, 2025, are part of a broader meeting of the Group of 20 finance ministers and central bank governors in Washington [2]. U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer hosted South Korea's Finance Minister Choi Sang-mok and Trade Minister Ahn Duk-geun for a two-plus-two meeting at the Treasury Department [2].

South Korea's overall exports for the first 20 days of April fell by 5.2% from a year earlier, with auto exports to the U.S. dropping by 6.5% [1]. To mitigate the impact of these tariffs, South Korea has announced emergency support measures for its auto sector [1]. In 2024, South Korea's exports of automobiles to the U.S. were valued at $34.7 billion, accounting for 49% of its total auto exports [1].

The U.S. has been exploring the possibility of reopening talks on sharing the cost of keeping U.S. troops in South Korea, which could be part of the broader negotiations [1]. South Korean officials have previously stated that the issue of defense costs is not up for negotiation.

The U.S. has also been engaging in trade talks with other countries, including China, with Secretary Bessent indicating that fully concluding trade negotiations with China could be a process spanning 2 to 3 years [3]. The prolonged timeline for these negotiations underscores the complexity and depth of the issues at stake, including tariffs, intellectual property protection, market access, and national security concerns.

References:
[1] https://auto.economictimes.indiatimes.com/news/industry/south-korea-to-seek-speedy-solution-on-auto-tariffs-in-us-trade-talks/120544425
[2] https://asia.nikkei.com/Economy/Trade-war/Trump-tariffs/US-and-South-Korea-hold-2-plus-2-trade-talks-in-Washington
[3] https://bitcoinworld.co.in/us-china-trade-timeline/