South Korea proposes ‘July Package’ to avoid tariffs

As the United States scrambles for trade deals with nations before the 90-day tariff pause ends, South Korea has proposed a ‘July Package’ in an effort to avoid US tariffs. The export-driven economy of South Korea stands to lose a lot if tariffs are imposed, particularly for major firms like Samsung and Hyundai.

South Korea’s ministers have been vocal about the long-term potential damage these tariffs could cause to the $100 billion trade between the two nations. US Treasury Secretary Scott Bessent recently said the countries have agreed to a framework for future consultations. Additional discussions are scheduled during the APEC trade ministers’ meeting in Seoul this May.

South Korea’s economy braces for tariffs

South Korea’s central bank reported a 0.1 per cent contraction in GDP for the first quarter of 2025. The decline is attributed to market volatility tied to tariff concerns, along with domestic instability. While the US believes the talks are ‘very successful,’ officials in South Korea are racing to Fast-track the deal.

India closes in on a trade deal

While South Korea negotiates tariff relief, India is on track to become the first country to finalise a bilateral trade agreement under the new policy framework. This was confirmed by the treasury secretary, Scott Bessent. US officials have reportedly praised India’s low tariffs and absence of currency manipulation for enabling smooth negotiations.

India’s finance minister, Nirmala Sitharaman, has also expressed optimism, stating that India hopes to conclude the first phase of the deal by fall.