South Korea is requesting an extension to the 90-day pause on the reinstatement of 25% U.S. tariffs, which is set to expire on July 9. Though both countries began trade discussions in April to address tariff issues, much of the focus has shifted to non-tariff barriers, as South Korea already imposes minimal tariffs on U.S. goods under an existing free trade deal.
Digital trade, in particular, has emerged as a key topic, with Seoul pushing legislation aimed at regulating tech giants, a move that has triggered concern among U.S. lawmakers, who argue it mirrors the EU’s “discriminatory” Digital Markets Act and unfairly targets American firms while sparing major Chinese players.
Amid pressure from Washington, South Korea’s ruling party is reportedly slowing its antitrust efforts targeting both foreign and domestic tech giants such as Google, Apple, Facebook, Naver, and Kakao. Other contentious points include South Korea’s policy requiring companies like Netflix to pay network usage fees and its restrictions on exporting location-based data.
Google and Apple have both requested the relaxation of data restrictions, with decisions expected later this year. These digital and data policy issues were also flagged in the U.S. trade barriers report released in March.
Agriculture remains a particularly sensitive area in negotiations. Although South Korea is the top buyer of U.S. beef, it restricts imports from cattle older than 30 months due to mad cow disease concerns. The U.S. continues to push for broader access to agricultural exports like potatoes and apples, but Seoul has pledged to safeguard its domestic farming sector. South Korea’s sky-high rice import tariff, over 500%, has not yet surfaced in discussions but remains a point of contention in past bilateral talks.
Beyond tariffs, separate negotiations are addressing issues like cost-sharing for the 28,500 U.S. troops stationed in South Korea and foreign exchange policies. South Korea is also highlighting its industrial contributions in shipbuilding, AI, and semiconductors to reduce America’s trade deficit. Although Seoul is considering further energy purchases from the U.S., it has expressed caution over participating in the $44 billion Alaska LNG project, citing unresolved feasibility concerns. Trade officials expect more clarity from the U.S. side on the project later this year.