South Korea Rushes to Talk Trade with US to Avoid Big Tariff

Intermediate | July 11, 2025

✨ 혼자서 기사를 소리 내어 읽거나 튜터를 따라 각 단락을 반복해서 읽으세요. 레벨...

Facing a Tariff Deadline

Why the Urgency?

South Korea is working quickly to have important trade talks with the United States. These South Korea US trade talks 2025 are gaining urgency due to a looming tariff increase. The reason? They want to avoid a new 25% tax, called a tariff, on many products they sell to the US. This tax is planned to start on August 1st.

What Happened Before?

Before this, there was a special break, or waiver, that kept the tariff lower, around 10%. But that break was ending, and now the US has announced the higher tax will take effect soon unless a new trade agreement is made. This has made South Korea eager to finalize a deal quickly.

Speeding Up Negotiations

High-Level South Korea US Trade Talks 2025

To prevent this 25% tariff, South Korean officials are pushing to speed up discussions with their US counterparts. They are holding high-level meetings, even involving top finance and trade ministers from both countries. The goal is to come up with a special “July Package” – basically, an agreement – before the August deadline arrives.

Key Industry Concerns

One of the main issues they are talking about is cars. The US put a 25% tariff on imported cars and car parts before, and South Korea really wants this removed or lowered. Cars are a big export for South Korea, so this tariff could hurt their economy a lot. The US also has other trade topics they want to discuss, like cooperation in industries such as shipbuilding.

A Delicate Balance

It’s a complicated situation, and reaching an agreement is not guaranteed. While the US seems to be pushing for quick results, South Korea is being more careful. The outcome of these talks will be very important for businesses and the economies in both countries.

Vocabulary

Tariff (noun): A tax or duty to be paid on a particular class of imports or exports.
- Example: “The government decided to place a 25% “tariff” on imported cars.”
Export (verb/noun): To send goods or services to another country for sale (verb); A product or service sold to another country (noun).
- Example: “South Korea hopes to increase its “exports” to the United States.”
Import (verb/noun): To bring goods or services into a country from abroad for sale (verb); A product or service brought into a country from abroad (noun).
- Example: “The US may impose a tariff on goods “imported” from certain countries.”
Negotiate (verb): To try to reach an agreement or compromise by discussion with others.
- Example: “They need to “negotiate” the terms of the trade deal.”
Deadline (noun): The latest time or date by which something should be completed.
- Example: “The team is working hard to meet the August 1st “deadline”.”
Waiver (noun): An act of refraining from pressing or enforcing a claim, right, or privilege.
- Example: “They received a temporary “waiver” from the higher tax.”
Reciprocal (adjective): Given, felt, or done in return.
- Example: “The two countries hope for a “reciprocal” trade agreement that benefits both.”
Surplus (noun): An amount of something left over when requirements have been met; an excess of production or supply over demand.
- Example: “The US is concerned about the trade “surplus” with South Korea.”
Contention (noun): Heated disagreement; an assertion, especially one maintained in argument.
- Example: “The tariff on cars is a major point of “contention” in the talks.”
Bilateral (adjective): Involving two parties, usually countries.
- Example: “They are holding “bilateral” discussions to resolve the trade issues.”

Discussion Questions (About the Article)

What is the main problem South Korea is trying to avoid?
When is the new 25% tariff supposed to start?
What kind of meetings are the US and South Korea holding?
Why are cars especially important in these trade talks?
What does the article say about the different approaches of the US and South Korea in the negotiations?

Discussion Questions (About the Topic)

Why do countries sometimes put tariffs on goods from other countries?
How might a tariff on exported goods affect businesses in the exporting country?
How do trade agreements help countries?
Besides tariffs, what other things can make trading between countries difficult?
How important is international trade for your country’s economy?

Related Idiom

“High stakes”

Meaning: When there is a lot to gain or lose in a situation; involving serious risks and potential consequences.
Example: “The trade negotiations are “high stakes” for both South Korea and the US.”

📢 Want more tips like this? 👉 Sign up for the All About English Mastery Newsletter! Click here to join us!

Join the English Mastery Club — your place to practice, grow, and connect with others mastering English just like you!

Follow our YouTube Channel @All_About_English for more great insights and tips.

This article was inspired by: Yahoo Finance, July 9, 2025