SEJONG, South Korea (Reuters) – South Korea made it clear on Monday that it won’t be able to strike a trade deal with the United States before its crucial snap presidential election on June 3 — and even getting something done by early July looks unlikely.
The two countries recently agreed to work toward a trade package that would head off new U.S. tariffs before a mutual suspension on tariffs ends on July 8. But after their first official meeting last Thursday, South Korean officials stressed the road ahead is complicated.
Adding to the challenge is the country’s political uncertainty. South Korea is currently led by an acting president after former President Yoon Suk Yeol was ousted for briefly imposing martial law last December. With an election looming, political analysts say it’s tough for the government to make big promises, especially on sensitive issues like defense costs and major energy projects.
“It’s honestly impossible to wrap up a comprehensive trade deal by late May or early June,” said Park Sung-taek, South Korea’s Vice Minister of Trade, Industry and Energy, in a candid conversation with reporters. “We’ve explained our political situation in detail to the U.S., and thankfully, they understand that our circumstances are a serious limiting factor.”
Meanwhile, the U.S. is under pressure to finalize trade agreements with key allies like Japan, South Korea, and India before its own July 8 deadline. But Park cautioned that everyone is “navigating uncharted waters.”
“Frankly, even though President Trump has high hopes, it’s going to be very hard for any real breakthrough in the next 70 days,” he added.
South Korea has asked for exemptions on tariffs for automobiles, steel, and other key sectors. In return, they’ve offered to work with the U.S. on shipbuilding, energy, and trade imbalance issues.
At this point, both sides seem committed to staying at the table — but everyone knows that politics, more than anything, will decide the pace.
(Reporting by Hyunjoo Jin; Editing by Ed Davies)
