Korea tries to avoid tariff snapback before July 8

South Korea’s Trade Minister Yeo Han-koo is holding discussions with US officials to secure an agreement by July 8, crucial for avoiding a return to heightened tariffs. These talks, ongoing from June 22 to 27, follow a disturbing 0.1% GDP contraction in Q1 2025, emphasizing the urgency of the negotiations.

With the economy under pressure and trade officials dealing with domestic chaos, reaching a deal is uncertain. Failure to agree may lead to tariffs snapping back, significantly harming Korean exports and exacerbating challenges faced by the already sluggish economy.