The South Korean government will continue negotiating with Washington on non-tariff measure issues ahead of the planned announcement of U.S. reciprocal tariffs, the industry ministry said on Tuesday, shortly after the office of the US Trade Representative (USTR) released an annual report on foreign trade barriers.

The government will work to address U.S. concerns over non-tariff measures with Washington through various communication channels, including working-level consultative bodies and the implementation committee of the Korea-U.S. Free Trade Agreement (KORUS FTA), the Ministry of Trade, Industry and Energy said, reports Yonhap news agency.

Earlier in the day, the USTR issued the 2025 National Trade Estimate Report on Foreign Trade Barriers (NTE), which is expected to play a crucial role in the Donald Trump administration's announcement of country-by-country reciprocal tariffs, set for Wednesday (U.S. time).

The ministry said the report assessed South Korea more favourably compared to other U.S. trade partners, noting that some 80 percent of duties on bilateral trade in industrial and consumer goods have been eliminated under the KORUS FTA.

The 2025 report mentioned a total of 21 non-tariff barriers by South Korea, which increased from the previous year but is smaller in number compared with reports issued prior to 2023, the ministry explained.

The 21 barriers included sanitary and phytosanitary barriers on agricultural products, such as restrictions on U.S. beef products deriving from animals more than 30 months of age, and digital trade barriers, such as network usage fees, proposals to regulate online platform operators for fair competition and restrictions on the export of location-based data.

For the first time, the report also mentioned South Korea's defence offset trade program, under which Seoul has set certain conditions for foreign defence contractors to meet for defence industrial cooperation when they engage in key government procurement projects.

The ministry said the latest NTE report listed many issues already cited in last year's edition and that it has been working to address Washington's concerns.

Earlier this year, Industry Minister Ahn Duk-geun and Trade Minister Cheong In-kyo visited Washington to meet with U.S. trade officials, including Commerce Secretary Howard Lutnick and USTR Jamieson Greer.

The government will closely analyse the NTE report to devise response measures, while continuing its tariff negotiations with the U.S., the ministry said.