【By Observer Net, Liu Bai】

According to China Central Television, on July 22 local time, US President Trump announced via social media that the US and Japan have reached a trade agreement. Meanwhile, South Korea, which was eager to go to the US for trade negotiations, was suddenly "stood up" by the US. It is understood that South Korean Deputy Prime Minister and Minister of Economy, Trade and Finance Koo Woon-woo learned of the news just as he was preparing to depart at the airport.

The South Korean Ministry of Economy, Trade and Industry released a statement on July 24, saying that due to "unexpected matters" of US Treasury Secretary Janet Yellen, the "2+2" economic and trade talks between South Korea and the US scheduled for July 25 in Washington could not be held as planned. The two sides will reschedule the meeting between Yellen and Koo Woon-woo, as well as the meetings between the chief trade representatives of the two countries as soon as possible.

Originally, the South Korea-US "2+2" economic and trade talks were scheduled for July 25, with Koo Woon-woo, Director General of the Department of International Trade Negotiations at the Ministry of Industry, Trade and Energy, Yoo Han-gyeong, USTR Representative Jamison Griever, and Yellen attending.

Koo Woon-woo stated on July 22 that, according to the request of the US side, he and Yoo Han-gyeong would hold talks with US officials. Koo Woon-woo had originally planned to fly to Washington on July 24 to attend the meeting the next day.

However, Koo Woon-woo only learned of the postponement of the negotiation before departing from Incheon Airport on the morning of July 24. Kim Jong-wan, Minister of Industry, Trade and Energy, and Yoo Han-gyeong had already arrived in the United States and were holding talks with the US side as scheduled.

On July 24, Incheon, South Korea, South Korean Minister of Economy, Trade and Finance Koo Woon-woo left Incheon Airport, canceling his trip to the US. IC Photo

On July 7 local time, Trump posted letters addressed to Japanese Prime Minister Ishiba Shun'ichi and South Korean President Yoon Suk-yeol on social media platforms, announcing that the US would impose a 25% tariff on all Japanese and South Korean products exported to the US starting August 1, 2025.

Since then, trade negotiations between South Korea and the US have not made progress. South Korea hopes the US can completely exempt or reduce the "reciprocal tariffs" on South Korea and the tariffs on specific industries such as steel and automobiles, but there are significant differences between the two sides in the fields of agriculture and livestock.

With Japan and the US reaching an agreement this week, the pressure on South Korea has increased.

Trump announced on the evening of July 22 on social media that the US and Japan had reached a "massive agreement," under which Japan would invest $55 billion in the US and pay a 15% tariff.

This news immediately caught the attention of the South Korean government, and South Korea sought to reach a trade agreement with the US before the August 1 deadline.

Yoo Han-gyeong had already arrived in the US on July 22, and Kim Jong-wan also flew to the US the next day, planning to meet with senior officials such as US Commerce Secretary Randal Quarles and Energy Secretary Jennifer Granholm.

According to insiders, the South Korean government has decided not to use opening the rice and beef market as a bargaining chip, but instead consider expanding the import of energy crops as a bargaining chip.

Kim Jong-wan said before departure that the results of the tariff negotiations may have significant economic impacts, and the South Korean government will fully consider the sensitivity of related domestic industries and make corresponding measures. "We will do our best to achieve a win-win result, and raise the cooperation between South Korea and the US in the industrial and energy sectors to a new level."

In the view of analysts, the agreement between the US and Japan will become the benchmark for South Korea's negotiations. Kim Yang-hee, professor of economics at Daegu University, said: "South Korea will find it difficult to accept an agreement with significant differences compared to Japan." Kim Sung-rae (Kim Sung-rae), analyst at Hanwha Investment & Securities, pointed out: "Investors see the Japan-US deal as the benchmark for the South Korea deal, which will put pressure on South Korea's negotiators to achieve similar or better agreements."

However, Kim Yong-jin (Kim Yong-jin), professor of management at Sogang University, believes that South Korea will find it difficult to obtain a lower tariff rate than Japan. If South Korea wants to reach a similar trade agreement, it needs to import more US agricultural products and energy and increase investment in the US.

This article is exclusive to Observer Net. Reproduction without permission is prohibited.

Original: https://www.toutiao.com/article/7530479089136730667/

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