South Korea has proposed a "package deal" to avoid steep tariffs threatened by U.S. President Donald Trump, its finance minister said Friday, as both sides indicated that a trade “understanding” could be reached as early as next week.

The proposal comes amid concerns from major South Korean exporters — including Samsung Electronics and Hyundai Motor — that the White House’s proposed 25 percent "reciprocal" tariffs could severely affect their access to the U.S. market.

South Korean Finance Minister Choi Sang-mok and Trade Minister Ahn Duk-geun, who are in Washington for meetings, held talks with U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer. The parties “exchanged views on U.S. tariff policies,” the trade ministry said in a statement.

Seoul’s “July Package,” as proposed, seeks to remove tariffs on South Korean exports before Trump’s 90-day tariff suspension period expires on July 8, according to the ministry.

"(We) explained that the imposition of reciprocal and product-specific tariffs by the United States could negatively impact bilateral economic cooperation," Choi said at a press conference in Washington.

The South Korean government "conveyed its position that exemptions and waivers should be granted for tariffs imposed on Korean exports," he added.

Choi also announced that further talks would be held when USTR Greer travels to Seoul for the APEC Trade Ministers' Meeting on May 15 and 16.

Trade Minister Ahn said the two countries had "reached a principled agreement on establishing a framework for future consultations."

Separately, Bessent described Thursday’s meeting with the South Korean delegation as "very successful" and indicated that a technical agreement may be reached sooner than expected.

"We will be talking technical terms as early as next week as we reach that agreement on understanding as soon as next week," Bessent told reporters.

"So the South Koreans came early... They came with their A-game, and we will see if they follow through on that," he added.

On Thursday, South Korea’s central bank reported that the country’s economy had unexpectedly contracted by 0.1 percent in the first quarter of this year, citing tariff concerns and political instability after a declaration of martial law.