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South Korea trying to resolve issues with US auto tariffs quickly, trade envoy says
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South Korea trying to resolve issues with US auto tariffs quickly, trade envoy says
Sep 20, 2025 10:53 PM

SEOUL, Sept 19 (Reuters) - South Korea's top trade envoy

said on Friday that South Korea is trying to resolve issues

around U.S. auto tariffs quickly to avoid being disadvantaged by

higher duties, explaining to the U.S. that "Japan and South

Korea are different".

Japan and South Korea are leading car exporters but under a

trade deal with Japan the U.S. applies a 15% tariff on Japanese

car imports, while U.S. tariffs on South Korean auto imports are

25%.

On July 30, President Donald Trump said the U.S. will reduce

duties on automobile imports to 15% in return for Seoul

investing $350 billion in the U.S, but the change has yet to be

implemented as the countries remain at odds over the details of

the investments.

"We've explained the differences between Japan and Korea as

much as possible," Trade envoy Yeo Han-koo told reporters upon

his return on Friday from a trip to Washington this week where

he met with U.S. Trade Representative Jamieson Greer.

Top officials in Seoul have repeated in recent days that

accepting all U.S. demands and copying the format of Japan's

deal with the U.S. would be difficult due to issues such as the

domestic foreign exchange implications of the investment fund.

"Disagreements have increased in the process of discussing

details since (the meeting between Trump and South Korean

President Lee Jae Myung in August), and now (tariff talks) are

in a difficult state," National Security Adviser Wi Sung-lac

told reporters on Friday. "But we shouldn't lose our whole

relationship while talking money."

Lee will visit New York next week to attend the UN

General Assembly, Wi said. During his trip, the president will

meet with Wall Street heavyweights including BlackRock CEO Larry

Fink to discuss artificial intelligence, energy and the South

Korean economy as an investment destination, but tariff talks

will be conducted separately from Lee's trip, he said.

Foreign Minister Cho Hyun told a briefing on Friday that

the government would try to resolve visa issues facing Korean

workers in the U.S. before proceeding with the $350 billion

investment package.

His remarks come after hundreds of Korean workers were

recently detained during a U.S. immigration a raid on a Hyundai

Motor battery plant in the state of Georgia, prompting calls by

Seoul for a new category of visa for skilled Korean workers.

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