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Trump reveals major trade deal with South Korea
(MENAFN) U.S. President Donald Trump has announced the completion of a new trade agreement with South Korea, which includes a 15% tariff on goods imported from Seoul. The deal also secures $350 billion in U.S.-controlled South Korean investments and an additional $100 billion committed to American energy purchases.
Posting on Truth Social Wednesday, Trump hailed the arrangement as a “Full and Complete Trade Deal,” emphasizing that U.S. exports to South Korea will face no retaliatory tariffs. He described the agreement as a move to “stabilize economic relations” with one of Washington’s key Asian allies.
South Korean President Lee Jae-myung also commented on the agreement, crediting the outcome to extensive planning and strategic consultation. In a social media statement, he said Seoul “gathered diverse opinions and refined our strategies” before reaching consensus.
According to Lee, the multibillion-dollar investment will help open access for South Korea’s industries to the U.S. market, particularly in high-tech and strategic sectors like shipbuilding, semiconductors, batteries, biotechnology, and energy.
Trade data from 2024 shows that South Korea exported $132 billion in goods to the U.S., mainly in automobiles, semiconductors, and electronics. In contrast, American exports to South Korea totaled $66 billion, largely consisting of industrial equipment, oil, and natural gas. This left the U.S. with a $66 billion trade deficit in goods, a gap that narrows when services are factored in.
This agreement with Seoul is one of several recent trade deals brokered by Washington ahead of Trump’s August 1 deadline for applying new tariffs. Similar arrangements have been made with countries such as the United Kingdom, Japan, and members of the European Union.
In April, South Korea briefly faced a 25% “reciprocal” tariff, though the finalized agreement reduced that rate to 15%, which still exceeds the 10% now applied to many other trade partners.
The European Union, which reached its own deal last week, also agreed to similar terms. However, critics of that agreement have labeled it a one-sided “submission” to American demands, with even a senior White House official describing it as the EU “bending the knee” to Trump.
Posting on Truth Social Wednesday, Trump hailed the arrangement as a “Full and Complete Trade Deal,” emphasizing that U.S. exports to South Korea will face no retaliatory tariffs. He described the agreement as a move to “stabilize economic relations” with one of Washington’s key Asian allies.
South Korean President Lee Jae-myung also commented on the agreement, crediting the outcome to extensive planning and strategic consultation. In a social media statement, he said Seoul “gathered diverse opinions and refined our strategies” before reaching consensus.
According to Lee, the multibillion-dollar investment will help open access for South Korea’s industries to the U.S. market, particularly in high-tech and strategic sectors like shipbuilding, semiconductors, batteries, biotechnology, and energy.
Trade data from 2024 shows that South Korea exported $132 billion in goods to the U.S., mainly in automobiles, semiconductors, and electronics. In contrast, American exports to South Korea totaled $66 billion, largely consisting of industrial equipment, oil, and natural gas. This left the U.S. with a $66 billion trade deficit in goods, a gap that narrows when services are factored in.
This agreement with Seoul is one of several recent trade deals brokered by Washington ahead of Trump’s August 1 deadline for applying new tariffs. Similar arrangements have been made with countries such as the United Kingdom, Japan, and members of the European Union.
In April, South Korea briefly faced a 25% “reciprocal” tariff, though the finalized agreement reduced that rate to 15%, which still exceeds the 10% now applied to many other trade partners.
The European Union, which reached its own deal last week, also agreed to similar terms. However, critics of that agreement have labeled it a one-sided “submission” to American demands, with even a senior White House official describing it as the EU “bending the knee” to Trump.
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