U.S. Considers Decrease in Tariffs on South Korean Imports Amid Defense Talks
During the 80th United Nations General Assembly in New York City on September 22, 2025, the Foreign Minister of South Korea, Cho Hyun, met with his counterparts from the United States and Japan, U.S. Secretary of State Marco Rubio and Japanese Foreign Minister Iwaya Takeshi respectively. This notable meeting occurred at the Lotte New York Palace Hotel, acting as a meeting point outside the confines of the main UN event.
In a revelation to Yonhap news agency, Cho Hyun identified that there had been a basic consensus on security aspects between the United States and South Korea. These discussions have been ongoing along with continued tariff negotiations, presenting a comprehensive diplomatic dialogue between the two nations.
Furthermore, Cho indicated that the U.S. was exploring a potential currency swap deal. This deal was identified as a salient requirement from South Korea during the tariff deliberations. However, without providing details, the minister suggested that the chances of accomplishing this agreement were wavering.
From the U.S. side, an agreement had been made to decrease tariffs on South Korean imports. In exchange for this decrement, South Korea was to bring forth a massive investment package worth $350 billion. However, subsequent discussions to refine the specifics of the deal, including the framework of the said investment, have hit a stagnation point.
In parallel to economic negotiations, South Korea’s ally, the United States, has been evaluating a distinct deal focused on security, mainly concerning the augmentation of South Korean defence expenditures. This agreement constitutes part of the expansive package designed to reduce U.S. tariffs.
U.S. President Donald Trump, in alignment with his tough negotiation style, has been vocal about South Korea assuming a larger part of its own military funding. He has also stressed the need for South Korea to contribute more towards the costs for the U.S. military presence on its soil.
Reasserting the importance of self-reliance in defence, South Korean President Lee Jae Myung earlier this week announced an increase in the country’s defence budget for the upcoming year. A substantial hike of 8.2% was projected, reflecting the strategic focus of the South Korean administration.
Cho Hyun made it clear to Yonhap that a consensus on security had been more or less established. This agreement would pave the way for South Korea to bolster its national defence in crucial areas, responding to the changing geopolitical realities in the region.
As part of this broad strategic agreement, top South Korean authorities reported strides in achieving more authority for South Korea in nuclear fuel processing for burgeoning industrial demands. This provision has been traditionally missing in the existing pacts between South Korea and the United States.
As an interesting development, Cho didn’t dismiss the notion of a potential encounter between U.S. President Donald Trump and North Korean leader Kim Jong Un. This idea has been circulating in media circles, generating substantial speculation.
Such an encounter may occur on the sidelines of the forthcoming Asia-Pacific Economic Cooperation summit. The event, set to be held in Gyeongju, South Korea in late October, is expected to be attended by President Trump.
President Lee of South Korea, in light of this, has counseled President Trump to attempt a rendezvous with Kim during his visit. This suggestion was made keeping in perspective the broader implications of such a meeting and its potential impact on regional dynamics.
Importantly, last month, Kim Jong Un declared his willingness for dialogue with the U.S., marking a shift in rhetoric. As reported by North Korean state media, the North Korean leader, however, emphasized that the precondition to such talks was that the United States stop insisting on North Korea relinquishing its nuclear arsenal.