South Korea Seeks US Trade Deal Matching Japan Ahead August Tariff Deadline

South Korea is under intense pressure to finalize a trade agreement with the U.S. by the August 1 deadline to avoid a 25% tariff imposed by President Trump, following the recently announced U.S.-Japan trade deal that set a 15% tariff rate and included commitments on American agricultural purchases and investment. South Korean officials, including Industry Minister Kim Jung-kwan, Finance Minister Koo Yoon-cheol, and Trade Minister Yeo Han-koo, are engaged in high-level negotiations with U.S. counterparts in Washington, seeking a deal that will not leave South Korea at a disadvantage compared to Japan. The talks involve sensitive concessions, particularly in agriculture, where opening markets for beef and rice could face domestic resistance, but alternatives like increased imports of crops for bioethanol are being considered. South Korea aims to leverage cooperation in energy and industrial sectors and explore projects such as U.S.-backed Alaskan gas development and shipbuilding to strengthen its bargaining position. The stakes are high as South Korea's export-driven economy, especially in semiconductors, automobiles, and batteries, could face significant disruption, and the nation seeks a positive-sum outcome that enhances Korea-U.S. industrial and energy ties. Investors closely watch the negotiations, viewing the Japan-U.S. deal as a benchmark that will influence South Korea’s final terms and the broader economic relationship with the United States.