U.S. Effectively Extends Tariff Negotiation Deadline by 3 Weeks... Korean Trade Authorities: "All-Out Negotiation Efforts Until the Last Minute"

Trump: "Letters Will Be Sent Starting from the 7th"

"Target Countries Are 12 to 15" Pressure

Lutnick: "Effective from August 1"

Message: "Negotiations During 3-Week Grace Period"

Korean Authorities: "Closely Monitoring All Variables"

The U.S. government has, in effect, extended the mutually imposed tariff schedule—originally set for the 9th—until the 1st of next month. The Korean government believes it has gained approximately three additional weeks to negotiate with the U.S., but still expresses significant concern over the uncertainty of the final negotiation results.

On the 6th (local time), before boarding the presidential aircraft to return to Washington, D.C. from New Jersey, President Donald Trump told reporters, "Starting Monday (the 7th), we plan to sequentially send out letters containing tariff rates." Regarding the target countries for these letters, he stated, "It could be 12 countries or 15 countries." Standing next to Trump, U.S. Secretary of Commerce Howard Lutnick added, "The tariffs will take effect from August 1," and explained, "The President is setting the current tariff rates and agreements." Trump's renewed mention of 'sending letters' has been analyzed as a strategy to pressure negotiating counterparties. Considering his comments about 'sending letters' and 'imposing tariffs from August 1,' it is interpreted that the negotiating nations receiving the documents are effectively being granted a 'three-week deadline.' For the U.S., with the deadline approaching and no new countries reaching agreements after the United Kingdom and Vietnam, as well as stalled negotiations with major partners such as the European Union (EU) and Japan, there was growing need to extend the closing date.

Trade experts currently predict that the '12 to 15 countries' to receive President Trump's letter are likely major trade partners considered critical by the U.S., and that Korea is likely to be included. A government official noted, "At this point, the countries receiving the letter appear to be important negotiation partners for the U.S." In April, Korea was notified by President Trump of a reciprocal tariff rate of 26%—the 10% base rate plus an additional 16 percentage points.

The government states that, although it is negotiating with the U.S. until the last minute to lower the tariff rate, uncertainty remains high. Senior U.S. officials are avoiding confirmation of whether 'August 1' indicates a further negotiation extension or a new reciprocal tariff deadline. Scott Besant, U.S. Secretary of the Treasury, responded to related questions by saying, "(August 1 is) not a new deadline for tariff negotiations, but simply the date from which it will be applied," adding, "(Each country) can wrap up negotiations quickly if they wish, otherwise they can simply revert to the original higher tariffs." If only the countries receiving the letters are granted deferral, it remains unclear whether reciprocal tariffs will be immediately imposed on the remaining 40-plus countries, or how already announced executive orders setting reciprocal rates will be amended or revoked. Another government official explained, "Since we have not yet received an official document from the U.S. side, we're closely watching all variables, including the possibility of immediate mutual tariffs on the 9th or further deadline extensions."

Yeo Han-koo, Deputy Minister for Trade at the Ministry of Trade, Industry and Energy and currently visiting the U.S., is reportedly planning to negotiate with Secretary Lutnick without finalizing his return schedule.

Kim Dae-hoon / Kim Ri-an, Reporters daepun@hankyung.com