South Korea Races to Avert Tariff Clash with US at APEC Summit

As the waves roll gently onto the shores of Jeju Island, South Korea is bracing for a different kind of storm: a pivotal showdown over tariffs that could shape the future of its economy.

On the margins of a high-stakes APEC summit, South Korea is set to restart crucial trade talks with the United States. A meeting between South Korean Trade Minister Ahn Duk-geun and US Trade Representative Jamieson Greer is scheduled for Friday, as Seoul pushes for a breakthrough to sidestep heavy American tariffs.

The summit has become a hive of diplomatic activity. Trade ministers from the Asia-Pacific’s most powerful economies have descended on Jeju, driven by mounting concern over the global trading system. The urgency follows a dramatic move by the US president, who recently rolled out sweeping tariffs on major trading partners.

Greer has been a key figure throughout the summit, holding a rapid succession of bilateral meetings. Among those spotted meeting with him was China’s international trade representative Li Chenggang, just days after both sides agreed in Geneva to a 90-day pause on retaliatory tariffs.

For South Korea, the pressure is immense. The country has been hit hard by a 25 percent US tariff on automobiles, introduced in early April. Cars account for 27 percent of South Korea’s exports to the United States, which itself absorbs nearly half of Korea’s total auto shipments. The blow has landed squarely on a vital sector of the economy.

Last year, South Korea posted a $66 billion trade surplus with the United States, making it one of Washington’s top targets alongside Vietnam, Taiwan, and Japan. In response, Seoul presented a proposal during April meetings in Washington dubbed the “July Package,” aimed at lifting the tariffs before their scheduled reactivation in early July.

Now, the clock is ticking. With trade officials in a flurry of negotiations, the outcome of Friday’s talks could decide whether South Korea can steer clear of a bruising trade war or be forced to weather its economic consequences.