Korean Negotiation Team Closely Follows US Delegation to Europe as Final Tariff Decision Nears

원본보기 아이콘

With the deadline for the Korea-US tariff negotiations set for August 1, Minister of Trade, Industry and Energy Kim Jungkwan and the South Korean government negotiation team are traveling across Europe, following the movements of the US negotiation delegation, in a full-scale effort to reach an agreement. As key negotiators from the Trump administration have moved to Europe, including Scotland, it is analyzed that the South Korean side is strategically attempting to catch up with the US delegation to secure additional negotiation opportunities.

According to multiple sources on July 29, the situation became urgent when President Donald Trump's visit to Scotland was confirmed just as the Korea-US negotiations in New York were concluding. In line with President Trump's European itinerary, US negotiation representatives such as Secretary of Commerce Howard Lutnick, US Trade Representative Jamison Greer, and Secretary of the Treasury Scott Besant all moved to Europe in succession. As a result, only the South Korean negotiation team remained in the US, and ultimately, the South Korean team decided to move to Europe in order to maintain their lead in the negotiations.

This unprecedented situation, where the negotiation team is traveling to Europe just before the negotiation deadline, reflects both the urgency and desperation of the South Korean government, while also serving as a strong demonstration to the US side of their serious commitment to the negotiations.

In fact, in an interview with Fox News on July 28 (local time), Secretary Lutnick emphasized, "The Koreans flew all the way to Scotland to meet me and Representative Jamison Greer," adding, "It shows how seriously they want to reach a deal." The "Koreans" mentioned here are believed to be Minister Kim and Trade Negotiation Head Yeo Hankoo.

Currently, Secretary Lutnick, a key figure in the negotiations, has been staying in Scotland since July 27 to coincide with President Trump's European schedule, and it is estimated that the South Korean negotiation team arrived there between July 26 and 27. Notably, Secretary Lutnick attended the trade meeting between President Trump and European Commission President Ursula von der Leyen in Turnberry, Scotland, on July 27, but did not attend the meeting with UK Prime Minister Keir Starmer on July 28. This suggests that the South Korean negotiation team likely had a separate, closed-door negotiation opportunity with Secretary Lutnick.

Minister Kim is expected to hold a final round of talks with Secretary Lutnick based on South Korea's "revised proposal" discussed in the New York negotiations. The negotiation team is maintaining close contact with Seoul, and is believed to be offering additional investment commitments and proposals for tariff reductions through market opening, particularly focusing on the shipbuilding, automotive, and battery sectors.

원본보기 아이콘

So far, the atmosphere surrounding the tariff negotiations is positive, but tensions remain high. Since President Trump, who holds the final decision-making authority, is currently in Scotland, the South Korean negotiation team aims to secure a ministerial-level agreement in Europe to prompt a direct decision from President Trump.

Secretary Lutnick also stated, "President Trump is in the driver's seat. He holds all the cards, and as he said, he will decide the tariff rates and how much countries will open their markets," adding, "And this will take place this week."

Regarding the possibility of reaching a deal before August 1, he said, "Everyone is ready. My role is to set the table for the President, and he will decide what to do," adding, "We have countries that have completely opened their markets to us, and some have offered a bit less. The President will say, 'This is how I want it,' and make his decision."

Meanwhile, the South Korean government's proposal for Korea-US shipbuilding cooperation worth tens of trillions of won, known as the "MASGA (Make American Shipbuilding Great Again)" project, has emerged as a key card in the final stages of the negotiations. The project aims to revive the lagging US shipbuilding industry through investment from South Korean private shipbuilders, thereby fulfilling President Trump's core policy goals of creating jobs and revitalizing industry in the US.

The South Korean negotiation team is using this large-scale shipbuilding cooperation plan to persuade the US side to lower tariffs, and it is reported that the US is showing significant interest in this proposal as well.

However, since the Trump administration has recently secured massive investment commitments from countries such as Japan and the EU, it remains uncertain whether South Korea's additional investment and market opening proposals, including the "MASGA" project, will meet US expectations.

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.