Tariff talks between S. Korea, Howard Lutnick conclude without agreement

Washington, Jan 31
South Korea's Industry Minister Kim Jung-kwan said that his talks with US Commerce Secretary Howard Lutnick over renewed trade tensions ended without reaching a conclusion, but their understanding of each other's positions has "deepened."

They met at the Commerce Department in Washington for the second straight day, after U.S. President Donald Trump's threatened on Monday to raise "reciprocal" tariffs and auto duties on Korea to 25 percent from 15 percent, citing a delay in the Asian country's legislative process supporting the implementation of a bilateral trade deal, reports Yonhap news agency.

"Our understanding of each other's positions has deepened. There were discussions on how to find a middle ground," Kim told reporters as he walked out of the Commerce Department.

"We need more talks. We have not yet reached a conclusion," he added.

Asked if there were discussions about when the U.S. will actually raise the tariffs, he refused to elaborate. "Negotiations are ongoing," he said.

Kim and Lutnick plan to continue talks via video link after Kim returns home, the minister said.

During this week's talks with Lutnick, Kim was expected to underscore Seoul's commitment to fulfilling its investment pledge under the trade deal with Washington that was first struck in late July and finalised months later.

Under the deal, South Korea has committed to investing US$350 billion in the United States, among other pledges, in return for the U.S. lowering of reciprocal tariffs on South Korea.

US President Donald Trump earlier said that his administration will work "something" out with South Korea after he threatened earlier this week to raise "reciprocal" tariffs and other levies on the Asian ally.

"We will work something out with South Korea," he said during a press availability at the White House, responding to a question about whether he would increase tariffs on Korea.

On Monday, Trump made the surprise announcement of a plan to increase "reciprocal" tariffs and auto, lumber and pharmaceutical duties on South Korea to 25 percent from 15 percent, taking issue with a delay in Seoul's legislative procedures supporting the implementation of the trade deal.