A prominent US expert said Monday that South Korea could face difficulty in agreeing to trade measures against China when it holds high-level tariff talks with the United States this week, as China warned countries against striking deals unfavorable to Beijing's interests.
Wendy Cutler, vice president of the Asia Society Policy Institute, made the remarks as Seoul and Washington plan to hold "two-plus-two" talks involving their finance and trade ministers in Washington on Thursday to discuss tariff and other related issues.
Ahead of the talks, China's Commerce Ministry issued a warning that it will "resolutely" take countermeasures if any country strikes a deal that might undermine China's interests.
"Of particular difficulty for Korea will be agreeing to measures that target China, its largest trading partner," Cutler said in a statement. "Today's warning from Beijing is probably causing increased angst among Korea's negotiating team, which is trying hard to address US concerns but will have its limits."
The expert also voiced concerns over the potential effect of South Korea's June 3 presidential election on bilateral trade talks.
"Korea's early June presidential election coming during the 90-day negotiating period could also complicate matters by adding Korean politics into the mix," she said.
The upcoming talks come after US President Donald Trump started imposing "reciprocal" tariffs, including 25 percent duties on South Korea, on April 9, only to place a 90-day pause on them hours later.
Cutler cast agricultural products as a "politically sensitive sector for Korea but one where they may be willing to provide additional market access."
She pointed out that Korea has much to offer the US, including foreign direct investment by its automotive, steel and semiconductor companies, cooperation on shipbuilding and energy cooperation, including liquefied natural gas from Alaska, among other things.
The imposition of new US tariffs has been a major headwind for South Korea's export-reliant economy. Korea has also been trying to avoid or minimize the impact of new or future US tariffs, including those on automobiles. (Yonhap)
