Japan and EU join ”15% tariff club”...Korea's negotiation deadline is fast approaching = Korean report

The United States recently reached an agreement with the European Union and Japan on a reciprocal tariff rate of 15%, leaving South Korea, which competes in the U.S. market, at the negotiating table with the possibility of still being subject to high tariffs.
On the 27th (local time), President Trump met with EU President Ursula von der Leyen in Turnberry, Scotland, and announced that most EU exports, including automobiles, would be subject to the EU's tariffs.
The EU agreed to purchase $750 billion in U.S. energy and to make additional investments of $600 billion in the U.S.
Prior to this, Japan had also pledged to invest $550 billion (approximately 81 trillion yen) in the United States, open its agricultural market, and offer a 1% subsidy on exports including automobiles.
However, South Korea is still facing a teaser of a 25% tariff, with the August 1 deadline for negotiations fast approaching. Other countries have already signed agreements with the United States.
With negotiations now complete, South Korea is the only country that has yet to reach an agreement. On the 26th, the Presidential Office said, "Ahead of ministerial-level talks scheduled for next week, we are working to prepare a trade package that is acceptable to both the United States and South Korea."
"We are looking forward to working with the US on this matter," he said, but there are only a few days left. The package includes a proposal for cooperation in shipbuilding, an area of particular interest to US Secretary of Commerce Robert Lutnick.
Minister Lutnick met with Minister of Trade, Industry and Energy Kim Jong-kwan from the 25th to the 26th to intensively discuss this issue.
The United States and South Korea are continuing talks after a previously scheduled meeting of their treasury and trade ministers was suddenly postponed, but negotiations
The negotiations are progressing slower than expected. Negotiations are said to be progressing slowly due to the many demands from the U.S. side. The South Korean government is considering expanding large-scale investment in the U.S. and promoting American agricultural products such as rice and beef, as well as digital services.
The two sides are considering measures including easing tariff barriers in the energy sector and expanding tax exemptions for some strategic items.
It is known that the issue has not been addressed in the negotiations. The South Korean delegation is putting all its efforts into the negotiations. As for the negotiating delegation with the United States, National Security Advisor Wi Seong-rak has traveled to the United States for talks with cabinet members.
Deputy Prime Minister and Minister of Strategy and Finance Koo Yoon-cheol and Minister of Foreign Affairs Cho Hyun will also be visiting Korea this week to discuss the details of the negotiations with Finance Minister Bessent and Minister of Foreign Affairs Lu.
The South Korean government is set to hold talks with Acting Secretary of State Bio on the matter. The 15% tax rate agreed upon by Japan and the EU is the minimum standard, and it is unwilling to accept any terms less favorable than this.
In the US market, China is competing with Japan and the EU in areas such as automobiles, and if a higher tariff is imposed, its export competitiveness will decrease. The US is aware of this.
It cannot be ruled out that the United States may make more demands on South Korea in order to avoid the US imposing sanctions. There are also growing concerns that South Korea will be asked to make supplementary demands, such as expanding the scale of investment and the level of market opening.
The United States is now in a position where it must shoulder a considerable burden in the negotiations. The United States will hold its third ministerial-level trade talks with China in Sweden from the 28th to the 29th.
Therefore, South Korean ministers have only two days to negotiate with the US on the 30th and 31st. Treasury Secretary Bessent is scheduled to meet with Deputy Prime Minister and Minister of Strategy and Finance Ku on the 31st, just one day before the deadline for tariff negotiations.
Attention is focused on whether a dramatic agreement will be reached.