May 27, 2025
US demands Seoul fix trade imbalance, talks with Japan accelerating: reports
Reuters, SEOUL
The US demanded that South Korea resolve the large trade imbalance
between the countries during recent trade talks, South Korean media
reported yesterday.
The US repeatedly raised the issue of the trade imbalance in the
commodity sector and both countries agreed it was necessary to address
it, broadcaster YTN and the Yonhap News Agency reported, citing an
unnamed South Korean trade official who was part of the
trade delegation.
South Korea had a record US$55.6 billion trade surplus with the US last
year, up 25 percent from 2023, Korea Customs Service data showed.
The two countries held technical consultations about trade in Washington
last week. They also discussed non-tariff measures, economic security,
digital trade, the origin of goods and commercial considerations, the
official cited by media said, adding that Washington
made specific requests for the first time.
Seoul has continued to push for tariff exemptions, the official said.
South Korea, which is among a few Asia-Pacific nations that have a
free-trade pact with the US, has sought exemptions on all tariffs.
South Korean Minister of Industry, Trade and Energy Ahn Duk-geun said
after a second round of ministerial-level talks in the middle of this
month that a request by Alphabet Inc’s Google to transfer local map data
overseas could be part of trade discussions.
The US had cited South Korea’s restrictions on online platform companies
transferring location-based data overseas in its trade barrier report
released in March.
South Korean media have also said that US objections over restrictions
on its beef imports and tariffs on rice could be included in talks.
Separately, the US and Japan agreed in their latest tariff negotiations
to “accelerate” efforts toward an agreement, Tokyo said yesterday. Japan
is subject to the same 10 percent baseline tariffs imposed on most
nations, plus steeper levies on cars, steel and
aluminum.
US President Donald Trump early last month also announced 24 percent
“reciprocal” tariffs on Japan, but later paused them to July.
Japan’s tariff talks envoy Ryosei Akazawa held a third round of talks in
Washington over the weekend and is due to return this week.
The two nations confirmed “we will accelerate efforts to realize an
agreement that is mutually beneficial,” Japanese Chief Cabinet Secretary
Yoshimasa Hayashi said.
Japanese Prime Minister Shigeru Ishiba on Sunday also touted “progress”
in the latest talks. Floated as one of Japan’s bargaining chips is its
technological prowess in shipbuilding, including of ice-breakers, local
media said.
“The US is interested in potentially having Japan repair American
warships, which is something we’re willing to support,” NHK quoted
Ishiba as saying.
Another potential sweetener is the idea of a joint US-Japanese sovereign
wealth fund floated by Softbank Group Corp founder — and Trump friend —
Masayoshi Son, the Financial Times said.
The fund, discussed directly between Son and US Secretary of the
Treasury Scott Bessent, would make large-scale investments in tech and
infrastructure across the US, it reported.