South Korea Seeks Extension as U.S. Tariff Pause Nears Expiry

South Korea will ask Washington to extend the 90-day suspension of U.S. tariffs that is due to lapse on July 9, a senior trade official said Monday. Seoul and Washington held their first minister-level meeting last week and expect technical talks to continue beyond the July 8 negotiating deadline set when the pause was agreed in April. U.S. negotiators have focused on what they describe as South Korea’s non-tariff barriers, while Seoul is seeking relief from duties of up to 50 percent on steel, automobiles and other exports. The two sides may decide next week which countries receive more time, the official said. Trade economists warn that the full re-imposition of tariffs could shave 0.3–0.4 percent off South Korea’s gross domestic product and hurt key industries ranging from autos to semiconductors. Seoul aims to secure an extension while crafting a broader package that could narrow its goods surplus with the United States and expand cooperation in areas such as defense, shipbuilding and energy.