U.S. Commerce Secretary Howard Lutnick: Trade Deals with South Korea and Japan to Face Delays Compared to UK Agreement

U.S. Commerce Secretary Howard Lutnick stated that trade negotiations with South Korea and Japan will be more complex and time-consuming than the recent U.S.-UK framework agreement. Following President Trump's May 8 announcement of the UK deal, Lutnick highlighted the intricate economic ties with Japan and South Korea, involving sensitive sectors like automobiles and electronics. The UK agreement, which includes tariff adjustments, serves as a model but not a comprehensive free trade deal. Lutnick's remarks indicate that tariff relief for Asian partners is not imminent, reflecting the challenges in securing similar agreements.

UK Deal Sets the Pace, But Not the Standard

On May 8, President Trump unveiled a framework trade agreement with the United Kingdom, describing it as a “breakthrough” that expands market access, reduces non-tariff barriers, and accelerates customs procedures for U.S. exports. The deal includes a 10% baseline tariff on UK imports, with sector-specific adjustments such as a reduced 10% tariff on up to 100,000 UK automobiles annually and the elimination of tariffs on steel exports. In return, the UK agreed to lower tariffs on U.S. goods from 5.1% to 1.8%, opening its market to American agricultural products, machinery, and chemicals.

Commerce Secretary Lutnick, who played a central role in the negotiations, noted that the UK deal could serve as a model for future agreements. “We’re trying to show people a frame for how to do business so that we can roll much more quickly,” he said. However, he also acknowledged that the UK agreement is not a comprehensive free trade deal, and several details—including digital services taxes and food standards—remain unresolved.

Lutnick: “Not Going to Be Fast Deals” with Japan and South Korea

In contrast to the UK, Lutnick warned that trade negotiations with Japan and South Korea are expected to be far more complex and time-consuming. “You’ve got to spend an enormous amount of time with Japan, South Korea. These are not going to be fast deals,” he said in an interview with Bloomberg Television.

Lutnick’s comments reflect the intricate economic relationships the U.S. maintains with both countries, which involve a wide array of sensitive sectors including automobiles, electronics, and steel. The Trump administration’s 10% baseline tariff remains in place, but Lutnick indicated that higher rates could apply unless these nations make significant concessions to open their markets.

The complexity of these negotiations is further compounded by the sheer volume of tariff lines involved. Referring to India, another country in active talks, Lutnick noted that a potential agreement could involve modifying as many as 7,000 tariff lines. “It just takes time, and it just takes work – so give us a chance, don’t be pushing and rushing,” he said.

Timeline Uncertain Despite Pressure for Progress

While the UK deal has been finalized in principle, other negotiations remain in earlier stages. Eurasia Group, a political risk consultancy, predicts that a deal with Japan could materialize by mid-June, though this remains speculative. Treasury Secretary Scott Bessent has expressed optimism, telling Congress he expects “more than 80% or 90%” of trade deals to be wrapped up by year’s end. However, experts like Han-koo Yeo, a former South Korean trade minister, caution that countries may deliberately slow the pace of negotiations due to the long-term implications of such agreements.

President Trump has maintained that the onus is on other countries to make offers. “We don’t have to sign deals,” he said. “They have to sign deals with us.” This stance, combined with the administration’s imposition of 10% baseline tariffs and the threat of higher sectoral duties, is intended to pressure trading partners into swift compliance. Yet, as Lutnick’s remarks suggest, the strategy may not yield quick results in Asia.

Broader Trade Landscape: China, India, and the EU

While Japan and South Korea are in active talks, China remains largely absent from the negotiation table. Despite President Trump’s earlier claims of communication with Chinese President Xi Jinping, Chinese officials have denied any formal discussions. Commerce Ministry spokesman He Yadong reiterated that the U.S. must first show “sincerity” and cancel unilateral tariffs before talks can proceed.

India, on the other hand, is described by Lutnick as “leaning in really hard,” suggesting that a deal with New Delhi could be among the next to be finalized. However, the scale of the work involved—thousands of tariff lines—means that even with political will, a comprehensive agreement will take time.

Meanwhile, the European Union has taken a more confrontational stance. Following the UK deal, the EU unveiled a list of U.S. products it may target with retaliatory tariffs if negotiations fail, highlighting the divergent paths the U.S. is taking with its various trading partners.

A Template, Not a Shortcut

Lutnick emphasized that while the UK deal offers a framework, it is not a shortcut. “This is a lot of work,” he said, reiterating that each country presents unique challenges. The administration hopes that the UK agreement will serve as a regional template, encouraging other nations to engage constructively. However, the pace of progress will depend on the willingness of each partner to meet U.S. demands for market access and regulatory alignment.

As the Trump administration continues its push for bilateral trade agreements under the “America First” doctrine, the road ahead remains complex. The UK deal may be a milestone, but as Lutnick made clear, it is only the beginning of a much longer journey.

References

• US commerce chief warns South Korea, Japan deals more complicated than Britain agreement
• Trump announces "breakthrough trade agreement" with U.K. Here's what to know.
• GREAT DEAL FOR AMERICA: President Trump’s “Breakthrough” Trade Deal
• Trump tariffs live updates: Trump unveils 'breakthrough' US-UK trade deal, first since 'Liberation Day'
• US, UK reach deal on tariffs, market access