South Korea’s new leader, President Lee Jae Myung, has cautioned that talks on a South Korea-US free trade agreement are still pending, days before a tariff deadline imposed by President Donald Trump. President Lee Jae Myung explained that both nations are struggling to establish their stances as they are under pressure from Trump’s threat of a 25% tariff on Korean exports beginning on July 9.
The situation further complicates Lee’s already compounded agenda of reviving the North Korea diplomacy and dealing with regional tensions with China and Russia.
Lee Says Tariff Talks ‘Clearly Not Easy’
In his first press conference since assuming office last month, President Lee acknowledged that the tariff negotiations with America have been “clearly not easy.” He emphasized that the call is for a bilateral agreement to the benefit of both countries. “It is hard to say clearly whether we will be able to conclude it by July 8. We are making every effort now,” he added.
Trump had temporarily suspended his worldwide reciprocal tariff policy for 90 days in April. That suspension runs out on July 9. If negotiators fail to reach an agreement, the US will impose 25% tariffs on South Korean products, particularly cars and semiconductors, potentially harming South Korea’s trade-dependent economy.
US Eyes More Than Just Tariffs
Aside from tariff pressures, the US is also said to seek South Korea to pay more for the 28,000 US troops deployed on the Korean Peninsula. Trump has insisted on allies paying more for their defence. President Lee has called for restraint and cautioned that moving too fast on the deal would damage South Korea’s interests.
Trade Minister Yeo Han-koo will likely soon travel to Washington for more talks with USTR Jamieson Greer and Commerce Secretary Howard Lutnick.
Outreach to North Korea Resumes
In addition to trade, President Lee reiterated his desire to resume negotiations with North Korea. “Mutual hostility and distrust are too serious,” Lee said. “But I think we should improve relations with North Korea on the basis of a solid coordination and consultation between South Korea and the US.”
Lee’s government has already suspended frontline propaganda broadcasts and shut down balloon launches along the DMZ. He also offered more frequent summits with Japan and pledged balanced diplomacy with the US, China, Russia, and North Korea.
Hard Balancing Act Ahead
Trump has also indicated fresh negotiations with Kim Jong Un. Lee has expressed support for Trump’s effort. Yet North Korea has yet to react in public. Analysts caution that the task of weighing diplomacy with all powers in the region, while safeguarding economic interests, might be challenging.
With the clock running on tariffs, Lee’s diplomatic finesse is put to the test early. South Korea now stands at a crossroads of sorts—between protecting its trade future and navigating the most volatile fault lines in the region.
