US President Donald Trump on Wednesday announced a trade agreement with South Korea, imposing a 15% tariff on imports from Seoul, as part of what he called a “full and complete trade deal” between the two nations.
He further declared that America won’t be subjected to any tariffs.
As part of the deal, the Asian nation will also provide $350 billion for investments in the United States, which will be owned, controlled, and personally selected by Trump.
Moreover, South Korea will also buy $100 billion worth of LNG or other energy products, and has also agreed to invest a major amount for investment.
Posting on Truth Social, the US president said, "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. The Deal is that South Korea will give to the United States $350 Billion Dollars for Investments owned and controlled by the United States, and selected by myself, as President."
He added, "Additionally, South Korea will purchase $100 Billion Dollars of LNG, or other Energy products and, further, South Korea has agreed to invest a large sum of money for their Investment purposes. This sum will be announced within the next two weeks when the President of South Korea, Lee Jae Myung, comes to the White House for a Bilateral Meeting."
Trump also congratulated South Korea’s new president, saying, "I would also like to congratulate the new President on his Electoral Success."
He also said that the deal would open South Korea "completely" to American goods, declaring, "they will accept American product including Cars and Trucks, Agriculture, etc."
A 15% tariff will be applied to South Korean exports, while American goods will face no such charge.
The announcement comes just ahead of President Lee Jae Myung’s first bilateral meeting with Trump at the White House since taking office in June, after the impeachment of former leader Yoon Suk Yeol following a failed martial law attempt.
Reacting to the deal in a Facebook post, Lee described it as "the first major trade challenge" of his administration, saying, "We have overcome a major hurdle."
"Through this deal, the government has eliminated uncertainty surrounding export conditions and ensured that US tariffs on our exports are either lower than or equal to those imposed on our major trade competitors," Lee said.
The agreement marks a significant early win for Lee, who now leads Asia’s fourth-largest economy at a time when its export-heavy industries are under global pressure.
Lee added, "This agreement represents the convergence of US interests in revitalizing its manufacturing sector and our determination to strengthen Korean companies' competitiveness in the American market."
Trump concluded his post by thanking South Korean officials, saying, "I would like to thank the Trade Representatives who came forward today. It was an Honor to meet them, and talk about the Great Success of their Country!"
Since his return to the White House in January, Trump has pursued aggressive trade measures, rolling out a blanket 10% tariff on both allies and competitors. Those rates are set to climb from August 1, with particularly steep increases on select nations, 25% on imports from India and 50% on those from Brazil.
Trump indicated the Brazil tariffs were in part retaliation for what he labelled a "witch hunt" against Jair Bolsonaro, the former Brazilian president and his far-right ally, currently facing a criminal trial.
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