President Trump announced a significant trade agreement with South Korea, poised to inject a substantial $350 billion in investments into the United States and establish a 15% tariff rate for the Asian nation.
This landmark deal, as revealed by Trump, stipulates that South Korea will allocate $350 billion for investments that are owned and controlled by the United States, with specific projects to be personally selected by the President himself.
Beyond the core investment, the agreement also includes South Korea’s commitment to purchase $100 billion worth of LNG and other energy products, alongside an additional substantial sum designated for their own investment purposes within the U.S.
The comprehensive details of this considerable investment are anticipated to be fully disclosed during South Korean President Lee Jae Myung’s upcoming visit to the White House, an event Trump indicated would occur within the next two weeks.
A critical component of the deal mandates South Korea to become “completely OPEN TO TRADE” with the United States, embracing American products such as cars, trucks, and agricultural goods, while ensuring that the U.S. will not face reciprocal tariffs on its exports.
This newly established 15% duty on South Korean imports contrasts with the 25% tariffs previously considered under Trump’s “Liberation Day” package, which was initially announced on April 2 but subsequently delayed for 90 days, setting the stage for these negotiations.
The push for such a comprehensive agreement stems from the administration’s aim to rectify the trade deficit disparity with South Korea, driven by an August 1 deadline for nations to agree to reciprocal trade terms or face potentially steep tariffs.
President Trump extended his gratitude to the trade representatives involved, acknowledging their contributions and expressing admiration for the “Great Success of their Country,” highlighting the collaborative effort behind this economic accord.
Historically, economic relations between the two nations were governed by a free trade agreement enacted in 2012, which largely eliminated duties on bilateral trade. However, the U.S. trade deficit with South Korea, its sixth-largest trading partner, notably surged to $66 billion last year, marking a 29% increase from 2023, underscoring the impetus for the new deal.
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