United States President Donald Trump has announced a trade deal with South Korea, the latest agreement unveiled ahead of his August 1 deadline for the imposition of steep tariffs on dozens of countries.
Under the “full and complete” trade deal, South Korean goods will be subject to a 15 percent tariff, while US exports will not face duties, Trump said on his Truth Social platform on Wednesday amid a blitz of trade-related announcements that also included new US duties on Brazil and India.
US and South Korean officials confirmed that the 15 percent rate would apply to vehicles, a win for the East Asian country’s car industry, which had been subject to Trump’s 25 percent tariff on vehicles and auto parts.
Seoul said it had declined requests for greater US access to its rice and beef markets, a politically fraught issue that has attracted fierce resistance from South Korean farmers.
But in a blow for South Korea’s steel industry, the world’s sixth largest, US Commerce Secretary Howard Lutnick said the agreement did not lower existing tariffs on steel, aluminium and copper.
Trump said South Korea would also contribute $350bn for investments “owned and controlled” by the US and purchase $100bn in liquefied natural gas and other energy products.
The East Asian country also agreed to invest a “large sum” of money for its own investment purposes, Trump said, with the amount to be announced “within the next two weeks” during a visit by South Korean President Lee Jae-myung to the White House.
“It is also agreed that South Korea will be completely OPEN TO TRADE with the United States, and that they will accept American product including Cars and Trucks, Agriculture, etc,” Trump wrote.
Lee, who took office in June after a months-long leadership vacuum prompted by impeached former President Yoon Suk-yeol’s short-lived declaration of martial law, said the agreement “eliminated uncertainties” and ensured that South Korea would pay tariffs at equal or lower levels than its competitors.
“The key is not to pursue unilateral benefits but to derive mutually beneficial results,” Lee said in a post on Facebook.
