South Korea Says Agreement Made With US on Trade Deal, Tariffs

South Korea said Sunday it concluded months of discussions with the U.S. on revising the allies’ six-year-old bilateral trade deal, and reached an agreement over President Donald Trump’s plan to impose tariffs on imported steel.

Trade negotiators of the two countries agreed "in principle" on both issues, Trade Minister Kim Hyun-chong said after arriving back in South Korea from a meeting with counterparts in the U.S.

While not elaborating, Kim said South Korea made no concessions to further open its agricultural market to U.S. exporters -- something he described as a red line. He added that there’s been "no retreat" on tariffs removed in the existing trade deal, known as Korus.

Friction over Korus came about when Trump started to blame the U.S.’s large trade deficit with South Korea on the agreement. The issue has been seen as a potential wedge between the allies as both their leaders plan for expected meetings with North Korean leader Kim Jong Un.

Read: Trump Cites U.S. Military Support to Put Trade Pressure on Seoul

Korea’s trade surplus with the U.S. was about $18 billion last year, down from $23 billion in 2016, according to the Korea International Trade Association. Cars accounted for more than 70 percent of the value of the surplus.

The Trade Ministry said Kim will brief on the outcome of the trade negotiation to media Monday morning. Kim’s comments were reported earlier Sunday by Yonhap News Agency.