South Korea has requested an extension to the 90-day pause on 25% tariffs, set to expire on July 9, as trade talks with the US continue.

A key focus is on non-tariff barriers, particularly South Korea’s proposed regulations on major tech companies.

US lawmakers argue these rules unfairly target American firms like Google and Apple while exempting Chinese competitors.

A South Korean lawmaker suggested the government may slow down antitrust legislation due to trade sensitivities.

Digital services are also under discussion. Content providers like Netflix face network usage fees, and there are restrictions on exporting location-based data.

Google’s request to use detailed mapping data is pending, with a decision expected on August 11.

Apple has reportedly submitted a similar request.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ US-Korea trade relationship has evolved through multiple negotiations despite significant liberalization

The current negotiations represent the latest chapter in a complex trade relationship that has already seen substantial tariff reductions through previous agreements.

When KORUS was first implemented, it eliminated tariffs on nearly 95% of bilateral trade in consumer and industrial products within just three years 1.

Despite these liberalizations, the US trade deficit with South Korea grew by 75% from 2012 to 2017, rising from $13.2 billion to $23.1 billion, prompting multiple rounds of renegotiation 2.

The agricultural sector has been particularly sensitive in these negotiations, with Korea maintaining an average agricultural tariff of 54% compared to the US average of 9%, despite Korea being the fifth largest market for US agricultural products 3.

This history explains why the current talks focus heavily on non-tariff barriers rather than just tariffs, as formal trade barriers have already been substantially reduced through previous agreements.

2️⃣ Agricultural market access remains a persistent sticking point despite previous gains