US Aims to Finalize Most Trade Pacts by August 1, Says President Trump
US President Donald Trump has announced that his administration expects to finalize most of its trade deals with various countries by August 1. South Korea and other partners are reportedly in intensive negotiations to secure agreements and avoid threatened 25% 'reciprocal' tariffs on goods like automobiles and steel. A White House official described the talks with South Korea as "productive," raising hopes for a breakthrough. The deadline places significant pressure on trading partners, including India, to conclude negotiations.
Unpacked:
Key issues include reducing US tariffs on South Korean automobiles and steel, improving market access for US goods in South Korea, and increasing South Korean investment in the US. Proposals also cover cooperation in sectors like shipbuilding and semiconductors.
A 25% tariff would severely affect South Korea's export-dependent industries, especially automobiles and steel. Major automakers like Hyundai and Kia, which rely on US sales for nearly half their exports, could see diminished profits and loss of market share to competitors with better trade terms.
President Trump set August 1 as the deadline for imposing new 'reciprocal' tariffs, putting pressure on trading partners to reach agreements to avoid steep tariffs on key exports. The US has threatened tariffs as high as 25% for countries without deals.
If no deal is reached, South Korea and other affected countries may face high US tariffs on major exports, leading to increased costs for manufacturers and consumers, disrupted supply chains, and slower economic growth regionally and globally. Economists have already downgraded growth forecasts.