U.S. hints at new trade deals as reciprocal tariffs set to impact S. Korea

The U.S. may start bilateral talks on new trade deals after imposing tariffs on major partners, including South Korea.

Seoul's trade minister, who wrapped up his trip to Washington, says the Trump administration's reciprocal tariffs on the country are expected to take effect starting April, as planned.

Our Lee Soo-jin starts us off.

The United States is considering forging new trade agreements, which could also impact Free Trade Agreement partners like South Korea.

U.S. Secretary of State Marco Rubio, in a CBS interview on Sunday local time, said that the U.S. could potentially engage in bilateral agreements with countries after resetting a "new baseline of fairness and reciprocity."

He emphasized that bilateral negotiations would not begin until reciprocal tariffs were fully implemented on countries like Canada, Mexico, and most of the EU, suggesting the tariffs could serve as a bargaining tool.

He also stated that the reciprocal tariffs are not targeted towards specific nations, but apply to all countries.

South Korea's trade minister Cheong In-gyo, who visited Washington to request an exemption from the tariffs, said on his return that the reciprocal tariffs on South Korea, are likely to take effect on April 2nd as President Donald Trump previously announced.

"The goal of reducing the trade deficit through reciprocal tariffs has not changed. Since President Trump directly oversees these tariffs, it's highly likely that his policies will be carried out as planned."

While there were no discussions on specific items like automobiles or beef, he said that the U.S. highlighted how South Korea's sanitary policies and technical regulations have made it difficult for the U.S. to access the Korean market.

Cheong's trip to the U.S. to meet with his counterpart follows Trump's accusation earlier this month that South Korea imposes tariffs four times higher than those of the U.S., a claim that Korea disputed.

South Korea's effective tariff rate on U.S. imports stands at 0-percent-79 percent as of 2024, in line with the two countries' FTA, a sharp drop from the 2-point-48 percent in 2015.

While it is unclear whether South Korea's FTA with the United States will be revised or replaced by a completely new deal, given that it was already revised during Trump's first term, it is highly likely that further adjustments will be considered in response to the changing trade dynamics.

Lee Soo-jin, Arirang News.