President Donald Trump announced Wednesday that the United States will impose a 15 percent tariff on imports from South Korea as part of a sweeping trade agreement.
The deal prevents the implementation of steeper tariffs that had previously been considered, and outlines major investment commitments by the Asian trading partner.
“I am pleased to announce that the United States of America has agreed to a Full and Complete Trade Deal with the Republic of Korea,” Trump wrote on Truth Social.
The agreement includes a $350 billion investment in the United States from South Korea.
According to Trump, the projects will be selected by him, though specific details regarding the structure or time frame of the investments have not yet been made public.
He added that more investment commitments would be announced in the near future.
In addition to the investment pledge, Trump stated that South Korea would purchase $100 billion worth of liquefied natural gas (LNG) and other energy products from the U.S., reflecting a deepening energy trade relationship between the two countries.
Trump also said South Korea will remove all import duties on American products, including automobiles, trucks and agricultural goods, opening its markets to expanded U.S. exports.
South Korean President Lee Jae Myung is expected to visit the White House “within the next two weeks” for further bilateral discussions.
Trump noted that the meeting would reaffirm the two countries’ long-standing alliance and their commitment to economic cooperation.
In Washington, three cabinet-level South Korean officials participated in trade negotiations with U.S. Commerce Secretary Howard Lutnick.
The South Korean delegation included Finance Minister Koo Yun-cheol, Industry Minister Kim Jung-kwan and Minister for Trade Yeo Han-koo.
According to a ministry spokesperson in Seoul, these officials have been in Washington since last week and met with Lutnick for two hours of trade talks.
Lutnick later confirmed that the United States had finalized additional trade agreements with Cambodia and Thailand, per the Daily Mail.
As for South Korea, Trump had originally set an August 1 deadline for 25 percent tariffs to go into effect before the new 15 percent agreement was reached.
South Korea is one of the United States’ key allies and is a major global exporter of semiconductors, automobiles and steel.
The agreement comes amid heightened international negotiations as the U.S. seeks to rebalance trade relationships and secure favorable terms.
South Korean President Lee Jae Myung encouraged his ministers to “engage in the difficult consultation with confidence,” according to a statement released by his office on Wednesday.
The directive was issued after he received an update on the status of talks in Washington.
The Wall Street Journal reported that prior to Wednesday’s developments, Commerce Secretary Lutnick had met with South Korean officials Kim and Yeo in Scotland and told them they needed to “bring it all” for their final proposal to Trump.
The report said that Lutnick emphasized the need for South Korea to deliver its strongest offer yet, according to Daily Mail reporting.
Following news of the deal, South Korea’s KOSPI stock index climbed 0.7 percent, reaching a near four-year high.
Analysts attributed the market boost to the flurry of visits by South Korean officials and business leaders to Washington, signaling progress in trade talks.
Several top executives from South Korea’s largest corporations also traveled to the United States to support the negotiations.
Hyundai Motor Group Chairman Euisun Chung was reported to be en route to Washington on Wednesday.
Samsung Electronics Chairman Jay Y. Lee and Hanwha Group Vice Chairman Kim Dong-kwan were also present in the capital.
Hanwha Ocean, an affiliate of Hanwha Group, recently announced a significant investment plan for the United States.
Hyundai Motor and Kia Corporation—together the world’s third-largest automaker—stood to be heavily impacted by a 25 percent tariff, given their dependence on the U.S. market for vehicle exports.
South Korean officials said the agreement also included discussions on cooperative ventures in critical industries such as semiconductors, battery technology and biotechnology.
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Author: Jordyn M.
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