Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesStocksEarnInstitutionAI & More
What’s stalling South Korea, US trade talks despite almost zero tariffs on US imports?

What’s stalling South Korea, US trade talks despite almost zero tariffs on US imports?

2025/07/07 17:00
By:

Non-tariff barriers and emerging regulatory clashes remain the main areas of contention in South Korean negotiations even as the 90-day pause on former 25% U.S. tariffs is set to expire on July 9.  

According to South Korean officials , the talks were originally intended to smooth over bilateral trade concerns. However, they have since grown into a larger negotiation touching on digital services regulation, agricultural market access, cost-sharing on defense, and energy cooperation.

Digital trade tensions take center stage

At the heart of the digital trade disputes are South Korea’s pending legislative proposals to rein in the dominance of large tech platforms. The laws are reportedly modeled after the European Union’s Digital Markets Act ( DMA ), and seek to increase transparency, promote fair competition, and protect smaller digital firms.

U.S. lawmakers, however, argue that these measures unfairly target American companies. In a July 1 letter to U.S. trade officials, Congressman Adrian Smith and 42 others criticized the proposals for unevenly affecting firms like Google , Apple, and Meta while leaving out Chinese tech firms such as ByteDance, Alibaba, and Temu.

The South Korean Democratic Party is reportedly considering delaying passage of the digital rules to avoid jeopardizing ongoing trade talks.

The U.S. also raised concerns about content-based fees, which would require content providers like Netflix to pay Korean network usage charges. Also, Google’s export of location-based data, which was previously denied approval in 2016, is under review again, with a decision due on August 11. Apple has also reportedly submitted a similar request.

See also Trump's Scott Bessent calls Elon Musk a 'loser,' tells him to quit politics and stick to business

Agriculture is also a major knot to untie 

Despite being the world’s largest importer of U.S. beef, South Korea maintains a ban on beef from cattle over 30 months old, citing fears of mad cow disease. Washington has called for lifting these restrictions and for wider access to markets for other products, including potatoes and apples.

Farmers in South Korea, however, are pushing back. At a June 30 public hearing, agricultural groups protested any further opening of the market, recalling the 2007 deal that phased in zero tariffs on U.S. beef by 2026.

South Korea’s 500%+ tariff on rice imports has not yet come up in current negotiations.

Defense, industrial cooperation, and energy

Beyond trade, foreign exchange policy and the cost-sharing burden for U.S. troops stationed in South Korea, currently around 28,500 soldiers, are also being addressed through separate channels. 

Although not officially part of the trade talks, these factors weigh on the strategic relationship between the two nations.

South Korea is also emphasizing its industrial contributions to the U.S. economy. Officials point to joint ventures in shipbuilding, AI, batteries, semiconductors, and electric vehicles, arguing that Korean investment helps reduce the U.S. trade deficit.

Energy collaboration is another topic of interest. South Korea has expressed tentative interest in participating in a $44 billion liquefied natural gas (LNG) project in Alaska, but officials remain cautious as they claim to need more clarity on the feasibility of the project as the US will be providing the technical information later in the year.

See also Asia stocks down as trade talks stall, oil prices fall on supply hike

In all of these, the July 9 deadline for the expiration of the tariff pause looms large.

Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot

0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Understand the market, then trade.
Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.
Trade now!

You may also like

AI investment enters the "Trough of Disillusionment", the next 18 months will be a life-or-death test!

Goldman Sachs believes that the AI investment cycle is currently in the "trough of disillusionment," but this is not the first time. The core contradiction lies in the fact that the business models of new cloud computing providers are highly dependent on end-user returns from AI spending, while currently "there are basically zero companies that can attribute profits to AI." Social Capital founder Palihapitiya has clearly defined an 18-month key window, during which the market will decide which AI business models are sustainable and which are not.

华尔街见闻•2026/11/11 05:11
AI investment enters the "Trough of Disillusionment", the next 18 months will be a life-or-death test!

Anthropic's Core Concern: Revenue Can Be Withdrawn at Any Time, but Computing Power Costs Are Locked in for up to 20 Years

Zheshang Securities believes that Anthropic's revenue is mainly based on usage-based billing, with remaining performance obligations covering only about 5.1 months of annualized revenue, while compute power costs are already locked in with $895.4 billion in irrevocable commitments, some extending as far as 2045. Revenues can be reduced at any time, but costs are non-exitable, creating a highly asymmetric maturity gap between the two—this is the company's real core constraint.

华尔街见闻•2026/11/11 04:46
Anthropic's Core Concern: Revenue Can Be Withdrawn at Any Time, but Computing Power Costs Are Locked in for up to 20 Years

Triple Pressure from the Federal Reserve, Treasury, and Congress; Goldman Sachs: Liquidity Crisis May Occur in 2027

Goldman Sachs warns that the reserve ratio of bank assets has dropped to around 11%, only slightly above the crisis trough of 2019. In the second half of 2027, a deadlock in debt ceiling negotiations will force the Treasury to rebuild the TGA, triggering a "perfect storm" of a sharp drop in reserves and a surge in T-bill supply; combined with stalled money market fund buying, this will create a huge liquidity black hole. The Federal Reserve could be forced into the awkward position of lowering interest rates and launching large-scale bond purchases to rescue the market.

华尔街见闻•2026/11/11 04:12
Triple Pressure from the Federal Reserve, Treasury, and Congress; Goldman Sachs: Liquidity Crisis May Occur in 2027