Automobiles emerge as sticking point in U.S. trade talks with allies

As South Korea and Japan continue trade negotiations with the United States, The Wall Street Journal reported Sunday (local time) that automobiles remain the biggest point of contention. The report noted that while Washington swiftly reached a trade truce with China, its chief geopolitical rival, progress has been much slower with its longstanding allies, including South Korea, Japan, and the European Union.

At the center of the dispute is the 25 percent tariff the U.S. previously imposed on imported vehicles. Seoul and Tokyo have consistently called for exemptions, but Washington has reportedly been reluctant to lift the duty. The widening gap in positions has slowed talks, despite the Biden administration’s stated desire for a swift agreement.

The Journal also reported that at the recent Asia-Pacific Economic Cooperation (APEC) trade ministers’ meeting in Jeju, South Korean officials met with U.S. Trade Representative Jamieson Greer to reiterate their request for a tariff exemption on automobiles. Japan has made similar demands, with Economic Revitalization Minister Ryosei Akazawa and others urging the U.S. to remove tariffs on both cars and steel.


Jin-Woo Shin niceshin@donga.com