President Donald Trump on Wednesday announced that the United States will impose a 15% tariff on imports from South Korea down from a threatened 25% as part of a new trade agreement aimed at easing tensions with one of Washington’s key Asian allies and top trading partners.
The announcement followed a meeting between Trump and South Korean officials at the White House, and came amid a flurry of trade policy developments ahead of the US president’s self-imposed August 1 deadline for new tariff decisions.
Imports from South Korea, a major exporter of semiconductors, automobiles and steel, had been at risk of facing a 25% tariff before Wednesday’s deal was struck.
“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 posted on Truth Social.
The deal also marked an early diplomatic test for South Korean President Lee Jae Myung, who assumed office in June following a snap election. Lee, in a Facebook post, said the agreement had “eliminated uncertainty in the export environment” and ensured that US tariffs would be “lower than or at the same level as major competitors.”
“We have crossed a big hurdle,” he added.
Trump said President Lee is expected to visit the White House “within the next two weeks” for their first in-person meeting.
As part of the agreement, South Korea committed to investing $350 billion in US-based projects chosen by Trump and pledged to purchase $100 billion worth of American energy products. Trump also stated that South Korea would allow US automobiles and agricultural goods into its market without import duties.
However, South Korean officials clarified that the country’s rice and beef markets would not be further opened and noted that talks are ongoing regarding US demands on food regulation standards.
Faridah Abdulkadiri
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