South Korea, US Hold Final Tariff Talks Ahead Grace Period End

With the August 1 deadline approaching for President Donald Trump's reciprocal tariffs, key trade negotiations are intensifying between the U.S. and countries like South Korea, Japan, and the European Union. South Korea is preparing for critical talks and maintaining firm stances, especially regarding rice and beef import tariffs, which are considered non-negotiable. While the initial impact of Trump's tariffs on the global economy has been limited, economists warn that the uncertainty and high tariff rates could lead to significant disruptions if deals are not reached, potentially causing firms to halt imports. Preliminary agreements with countries such as Vietnam and China still involve substantial tariff rates, and the EU faces the threat of tariffs up to 30 percent, which could disrupt transatlantic supply chains. Market participants are closely monitoring these developments amid concerns about trade policy volatility, while domestic economic indicators in the U.S. remain robust. Treasury Secretary Scott Bessent and other officials emphasize the urgency of concluding trade deals before the tariff deadline to mitigate risks to global trade and markets.