South Korea and U.S. Trade Talks: Navigating Tariffs and Digital Sectors

South Korea, an early starter in U.S. trade discussions, is negotiating an extension to the 90-day pause on 25% tariffs originally set to expire on July 9. Engagements currently center around non-tariff barriers due to existing low tariffs under a free trade agreement.

The digital sector is a significant focal area in the negotiations, with legislative moves in South Korea aimed at regulating tech giants mirroring the European Union's Digital Markets Act. These regulations, criticized for potentially targeting American companies disproportionately, add another layer of complexity to the trade dialogue.

Additionally, the ongoing talks encompass agriculture, where the U.S. is pressing for greater market access, particularly for beef and apples, amid domestic concerns. Industrial cooperation, defense costs, and potential energy projects, like the Alaska LNG initiative, are also vital components of the ongoing negotiations.

(With inputs from agencies.)