The U.S. 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.
“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.”
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.
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.
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.
Choi and Industry Minister Ahn Duk-geun met with Bessent and U.S. 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.
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.
South Korea, a key U.S. 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.
It remains to be seen how far the interim government in Seoul can carry the negotiations when the country is preparing to elect a new leader on June 3. The main opposition party, whose candidate, Lee Jae-myung, is leading in polls, has voiced concerns that acting President Han Duck-soo is rushing to sign a deal.
The high-stakes meetings come as markets have been rattled by Trump’s shifting rhetoric on tariffs and Federal Reserve Chair Jerome Powell. The U.S. president has signaled interest in making deals with some key trading partners, but has not yet concluded any agreements.
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.
Trump recently declared “big progress” with Japan, though Prime Minister Shigeru Ishiba has said his country won’t just keep conceding to U.S. demands to reach a deal. Japan also intends to push back on U.S. efforts to organize trading partners into a bloc against China, according to current and former Japanese officials.
Washington is also touting “significant progress” with India following talks between Vice President JD Vance and Indian Prime Minister Narendra Modi. The two sides finalized what it called a terms of reference for negotiation on a new trade pact, according to a White House statement during the vice president’s visit there.
Trump earlier this month said he had a “great call” with South Korean acting President Han Duck-soo, which included discussions on tariffs, shipbuilding and military support.
“In any event, we have the confines and probability of a great DEAL for both countries. Their top TEAM is on a plane heading to the U.S., and things are looking good,” Trump posted April 8 on social media.
The government in Seoul has reviewed multiple packages to present to the Trump administration as it seeks to narrow its trade surplus with the U.S., which jumped about 25% in 2024 from a year ago to $55.7 billion.
Preliminary trade data from South Korea suggested U.S. tariffs were already having an impact. Customs office information showed South Korea’s overall exports fell 5.2% from a year earlier in the first 20 days of this month.
