Strategic Trade Talks: South Korea Navigates U.S. Tariffs Amid Political Unrest

South Korea's trade minister Yeo Han-koo is set to visit the United States from June 22 to 27, according to an announcement by the trade ministry on Saturday.

During the visit, Yeo will engage in discussions with U.S. Trade Representative Jamieson Greer, including the third round of bilateral technical meetings. However, the ministry has withheld details about these conferences. Reuters learned from a ministry official that, with key ministers yet to be appointed under the new U.S. administration and no summit scheduled, the talks might center around manageable topics for the trade ministry, steering clear of significant issues like defense cost-sharing and exchange rates.

Presently affected by a 10% blanket tariff and a temporarily paused 25% country-specific tariff, South Korea has agreed with the U.S. on formulating a tariff-reduction deal by July 8, as per initial talks in late April. Amid challenges, South Korea's economy contracted in Q1 due to U.S. tariffs and domestic political turmoil following former President Yoon Suk Yeol's martial law decree.

(With inputs from agencies.)