Minister Ahn Duk-geun of the Ministry of Trade, Industry and Energy will begin his visit to the United States on the 26th to engage in trade negotiations aimed at easing tariff measures with the U.S. government. To be excluded from the list of tariff targets, the South Korean government is expected to present shipbuilding cooperation, energy imports, and increased investment in the U.S. as negotiation cards.
According to the government, Minister Ahn is coordinating a meeting schedule with Secretary of Commerce Howard Gutman and Secretary of Energy Chris Wright. During the visit to the U.S. until the 28th, the government is reported to first present cooperation plans in areas where the U.S. has expressed demand and to subsequently develop tariff negotiations based on this.
In the meantime, the Ministry of Trade, Industry and Energy has faced limitations in high-level contact due to vacancies in positions such as the Secretary of Commerce and the Representative of the Office of the U.S. Trade Representative (USTR), which are responsible for industrial and trade policy. Observations suggest that U.S. tariff measures may accelerate, and with Gutman taking office on the 21st, the ministry is hastily pushing ahead with the itinerary for the visit.
Secretary Gutman is a key figure leading President Donald Trump's tariff policy. Recently, he mentioned a minimum of $1 billion in investments to the U.S. during meetings with a private delegation composed of the top executives of 20 domestic conglomerates. As Minister Ahn coordinates a meeting with Secretary Gutman, the ministry plans to formulate responses in consultation with the private delegation.
The cooperation plan in the shipbuilding industry, including 'vessel maintenance, repair, and overhaul (MRO)', mentioned by President Trump during his first call with President Yoon Suk-yeol shortly after the election last November, is also cited as a key negotiation card. Last month, the government established a multi-agency task force (TF) for Korea-U.S. shipbuilding cooperation and is preparing a cooperation package. Since the TF has focused on identifying areas of cooperation desired by the U.S. since its launch, there are expectations that Minister Ahn will extract this through high-level talks in the U.S.
During discussions with Secretary Wright, plans to expand energy imports are expected to be presented. This is because President Trump has declared intentions to enhance energy exports to improve the trade balance following his inauguration. According to the U.S. Department of Commerce, last year, South Korea recorded a trade surplus of $66 billion with the U.S. However, the Ministry of Energy noted that energy is not directly related to trade measures, thus it is not a direct subject of tariff negotiations.
President Trump is poised to expand the scope of tariffs to include automobiles and semiconductors and has indicated the introduction of 'reciprocal tariffs' considering non-tariff barriers against countries with trade deficits. He has also suggested the potential repeal of the Inflation Reduction Act (IRA), which was implemented during the Biden administration.
Minister Ahn is expected to request not only tariff policies but also the maintenance of investment subsidies in the semiconductor sector under the IRA from the U.S. Discussions related to advanced manufacturing tax credits (AMPC) in the battery sector will be primarily handled by Jeong Jong-kyung, the ambassador for international investment cooperation. Ambassador Jeong will visit seven U.S. states, including Michigan, Ohio, Tennessee, Arizona, Kentucky, Georgia, and Indiana from the 28th for two weeks to conduct meeting schedules with governors. These states have seen investments from LG Energy Solution, Samsung SDI, and SK On, which have established factories there.
A Ministry of Trade, Industry and Energy official stated, 'The schedules and agendas for meetings with Secretary Gutman and Secretary Wright are still under coordination,' adding that 'negotiations with Jameson Greer, the nominated representative of the U.S. Trade Representative (USTR), who has not been officially appointed, will be conducted later by Jeong In-kyu, the head of the Trade Negotiation Bureau, instead of Minister Ahn.'