Lutnick: "Trade Agreements with South Korea and Japan Will Take Considerable Time"

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Howard Lutnick, U.S. Secretary of Commerce, said on May 8 (local time) that "it will take a considerable amount of time to finalize trade agreements with South Korea and Japan."

In an interview with Bloomberg TV on the same day, Secretary Lutnick stated, "We need to invest a lot of time in negotiations with South Korea and Japan," adding, "These are not agreements that will be concluded in the short term."

Howard Lutnick, U.S. Secretary of Commerce. Photo by Reuters Yonhap News

On this day, the United States signed its first trade agreement with the United Kingdom following the imposition of reciprocal tariffs. Bloomberg explained that Secretary Lutnick's remarks signal that some Asian partner countries may have to wait longer for tariff reductions.

Secretary Lutnick mentioned that India is actively engaging in negotiations and could become the second country to complete a trade agreement after the United Kingdom. However, he noted, "Probably about 7,000 tariff items will need to be changed or adjusted under the agreement," emphasizing that "it will take time and effort."

Secretary Lutnick also gave an interview with U.S. broadcaster CNBC on the same day. When asked whether major countries could reach trade agreements by July 8, he answered affirmatively. His strategy is to create a kind of template through trade agreements with one or two countries and then use it to provide a negotiation model for others.

Currently, the Trump administration is imposing a basic tariff of 10% on all countries except China. Secretary Lutnick said, "In most cases, the tariffs are likely to be higher, but the best would be 10%," adding, "Countries with trade deficits will face higher tariffs."

On May 10, U.S. Treasury Secretary Scott Besant and Chinese Vice Premier He Lifeng will begin trade negotiations in Geneva, Switzerland. Regarding this, Secretary Lutnick said, "Tariff rates of 145% and 125% essentially mean decoupling," and noted, "We have a huge trade deficit with China, both directly and indirectly, but even so, we want to cooperate with them and seek solutions together." He added, "What President Trump wants is to ease tensions, return to mutual trade, and ultimately achieve a major agreement."

The previous day, Bloomberg News reported that the Trump administration plans to withdraw the three-tier artificial intelligence (AI) semiconductor export controls put in place by the previous Joe Biden administration. Regarding this, Secretary Lutnick said, "We will scrap that policy next week and introduce a new one," adding, "All of our allies will be able to purchase semiconductors." He continued, "The core idea is that we want half of the world's best semiconductors to be produced domestically and half overseas," and explained that while other countries will be allowed to purchase semiconductors, the U.S. will require domestic investment to maintain technological leadership.

This content was produced with the assistance of AI translation services.