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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Seoul, July 24, 2025 – The Korea-U.S. “2+2 Trade Dialogue,” originally scheduled to be held on July 25 (local time) in Washington D.C., has been abruptly postponed, raising concerns that the two countries may not reach an agreement before the U.S. tariff hike takes effect on August 1.
According to government sources, the U.S. Treasury Department sent an email at 9 a.m. on the 24th, informing the Korean side that the meeting would be delayed due to an "urgent scheduling conflict" involving U.S. Treasury Secretary Scott Bessent. South Korean Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-cheol, who was set to depart from Incheon Airport as chief negotiator, had to cancel his trip at the last minute.
Complicating matters further, U.S. President Donald Trump is scheduled to visit Scotland from July 25 to 29, while Secretary Bessent will be in Stockholm, Sweden, on July 28–29 for talks with Chinese officials—making a high-level meeting with Deputy Prime Minister Koo unlikely before the tariff deadline.
During a four-day trip to Washington starting July 20, South Korea’s National Security Director Wi Sung-rak also failed to meet U.S. Secretary of State and National Security Advisor Marco Rubio in person. Though a meeting was scheduled for July 21 at the White House, it was canceled last minute after President Trump summoned Secretary Rubio. The two officials instead held a phone consultation on July 22.
The expected summit between President Lee Jae-myung of South Korea and President Trump also remains unscheduled.
With a series of high-level talks falling through, fears are mounting that the bilateral trade negotiations may collapse. In response, the Korean government said, “Both sides are working to reschedule the meeting as soon as possible,” and emphasized that ongoing negotiations by Trade Minister Kim Jeong-kwan and Chief Trade Negotiator Yeo Han-koo in Washington are proceeding as planned.
Meanwhile, competing exporters such as Japan and the EU are making more progress. Japan has already concluded a deal with the U.S. to reduce mutual tariffs on automobiles from 25% to 15%, and the EU is reportedly nearing an agreement. President Trump stated during an AI summit in Washington on July 23 that, “We are in serious talks with the EU,” adding that the U.S. is offering to lower tariffs if EU countries open their markets to American companies.
Jung Chul, head of the Korea Economic Research Institute, expressed concern over the delays: “With less than a week remaining, the lack of progress is worrying. Japan has already secured a deal, and Europe is close to one—Korea risks losing competitiveness in major export sectors like automobiles.”
Some experts speculate that the U.S. may have intentionally delayed the talks to gain a negotiating edge. “Trade negotiations are among the top priorities for the U.S. Treasury Secretary,” said Choi Yong-min, former researcher at the Korea International Trade Association. “Canceling a meeting with Korea without prior notice may be a strategic move to increase leverage, especially if they see greater urgency in talks with the EU and China.”
President Trump added pressure in a post on Truth Social, stating, “We will only lower tariffs for countries that open their markets. Otherwise, tariffs will be raised significantly higher,” signaling a warning to countries like Korea that have yet to reach a deal.
Despite rising anxiety, some experts urge calm and measured responses. Kim Heung-jong, former president of the Korea Institute for International Economic Policy, stated, “The situation has not fundamentally changed. It’s important to remain composed and proceed with negotiations steadily.”
Choi Seok-young, former ambassador for economic affairs and now a senior advisor at law firm Kwangjang, added, “Japan’s deal may appear significant, but it doesn’t contain many new concessions. If Korea adjusts its offer flexibly, a deal within the week is still achievable.”
He also noted that Korea should propose lower commitments on defense costs and investment funds than Japan, given the GDP gap, and aim for a 12.5% auto tariff agreement, citing Korea’s existing zero percent import tariff on U.S. cars.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
