Bessent Sees US, Korea Trade ‘Understanding’ by Next Week

A reach stacker moves a container at the Port of Pyeongtaek in Pyeongtaek, South Korea, on Friday, March 14, 2025. South Korea will strengthen its scrutiny of metals imports to protect its producers from potential dumping in the local market after President Donald Trump proceeded with plans to apply 25% tariffs on global steel and aluminum imports. Photographer: Jean Chung/Bloomberg Photo by Jean Chung /Bloomberg

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The US and South Korea could reach an “agreement of understanding” on trade as soon as next week, Treasury Secretary Scott Bessent said Thursday, following talks between the two nations.

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“We had a very successful bilateral meeting,” Bessent told reporters during an Oval Office meeting between President Donald Trump and the prime minister of Norway. “We may be moving faster than I thought, and we will be talking technical terms as early as next week as we reach an agreement on understanding as soon as next week.”

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Bessent did not elaborate on what would be included in a so-called agreement of understanding with Seoul. Dozens of nations have appealed to the Trump administration for relief from higher tariffs that have been suspended 90 days to provide time for talks.

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South Korean Finance Minister Choi Sang-mok said the two sides are aiming for a deal by early July, before the reprieve ends. The meeting “has established the basic framework for further discussions by narrowing the scope of talks and forming a consensus on schedule,” Choi told reporters in Washington after talks with Bessent.

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Trump is facing pressure to demonstrate progress on his trade agenda, with investors and business leaders expressing concern that the tumult unleashed by his April 2 tariff announcement could plunge the world economy into a recession.

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Choi and Industry Minister Ahn Duk-geun met with Bessent and US Trade Representative Jamieson Greer in Washington on Thursday. South Korea is among the first nations to sit down for face-to-face negotiations, following Japan’s meetings last week, and the talks will be closely followed by other countries seeking tariff relief.

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Among the topics on the table were shipbuilding and energy cooperation as well as non-tariff measures and FX policy, Choi said. The South Korean Finance Ministry will soon have working-level talks with the Treasury Department to discuss currencies, he added.

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South Korea, a key US ally, was slapped with a 25% across-the-board import tax that has been temporarily reduced to 10% for 90 days. As with other nations, South Korea also faces a 25% levy on shipments of cars, steel and aluminum.

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The high-stakes meetings come as markets have been rattled by Trump’s shifting rhetoric on tariffs and Federal Reserve Chair Jerome Powell. The US president has signaled interest in making deals with some key trading partners, but has not yet concluded any agreements.

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Full trade agreements traditionally take years to conclude, and the White House is likely to reach deals that are far more limited in scope, or leave pivotal details still to be settled before the deadline for Trump’s higher tariffs to snap back into place.

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What Bloomberg Economics Says…

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“The South Korean delegation may have made a strong first impression, but this is just the opening move. The real test is whether today’s goodwill can survive the actual negotiations.”