2025-10-16
Bessent expects S.Korea-US tariff talks to conclude within 10 days
US Treasury Secretary Scott Bessent on Thursday expressed confidence that South Korea and the US will narrow differences over the structure of Seoul’s proposed $350 billion US investment, adding that the two countries will reach a conclusion on their tariff negotiations within the next 10 days.At a media briefing, Bessent said the two countries are currently ironing out details over their tariff deal and he was confident that they will resolve their diffferences, in response to a queestion about the need of a currency swap arrangement, the sticking point in the talks. If he were the Fed Reserve chairman, he would have entered into a swap agreement with South Korea, he said, noting that a currency swap deal falls under the remit of the Fed.Echoing Bessent's optimism, South Korean economic ministers, including Kim Yong-beom, presidential chief of staff for policy, said the two countries have substantially bridged differences over Seoul’s demand for FX safeguard measures related to the $350 billion investment proposal.Their remarks came ahead of their departure for Washington, D.C., on Thursday to resume follow-up talks on the U.S.–Korea tariff negotiations. On Wednesday, Bessent said at CNBC’s “Invest in America Forum” that the trade talks between the two countries are going well.“I think we are about to finish up with Korea ... The devil’s in the details, but we are ironing out the details,” he said, in response to a question on which trade negotiations beyond China is he most focused lately.While Washington has sought an upfront cash commitment for all of the $350 billion, Seoul has proposed an unlimited currency swap line, as part of its safeguard measures for the investment, citing its potential shock to its domestic economy and foreign exchange market.Alternatively, Seoul suggested an investment through the won currency, according to a report from the Dong-A Ilbo on Thursday.“There are discussions about alternatives that would have less impact on our dollar reserves, such as creating accounts that can hold Korean won and investing in the U.S. through those,” the newspaper quoted an unnamed government official as saying.On Monday, South Korean Foreign Minister Cho Hyun said that Washington has come forward with a new proposal concerning the $350 billion investment package. Alongside the currency swap proposal, Seoul has demanded a reasonable cap on the proportion of its direct investment in the US and a guarantee that it will have a say in selecting investment targets based on commercial viability. On Wednesday, Trump reiterated that South Korea has agreed to pay $350 billion up front in cash at a press conference at the White House, without elaborating further.There are mounting expectations that the two countries will likely finalize their tariff ahead of the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, Korea at the end of this month.Trump is scheduled to attend the summit and hold a bilateral meeting with South Korean President Lee Jae Myung during the visit to Korea. This week, South Korea sent top economic and trade officials to Washington in a concerted effort to finalize a tariff deal, under which Washington will lower reciprocal tariffs on Korean products to 15% from 25%.At a parliamentary hearing on Monday, Finance Minister Koo Yoon-cheol said he would meet with Bessent on the sidelines of the G20 Finance Ministers meeting and the annual International Monetary Fund (IMF) gathering in Washington, D.C.By Yeonhee [email protected] Jennifer Nicholson-Breen edited this article.
