On Wednesday, July 30th, President Trump announced a trade agreement between the United States and South Korea. According to the agreement, South Korean products will be subject to a 15% tariff, while South Korea will invest $350 billion in the United States and open its market to American goods.
President Trump took to the “Truth Social” social media platform to share the news, stating that the United States and South Korea had reached a comprehensive agreement. Under the terms of the deal, South Korea will make a $350 billion investment in the U.S., to be under American control. Additionally, South Korea will purchase $100 billion worth of liquefied natural gas (LNG) or other energy products.
The President remarked, “Both sides have agreed that South Korea will fully open up trade with the United States and accept American products including cars, trucks, and agricultural goods. We have agreed to impose a 15% tariff on South Korean goods, while American products will not be subject to tariffs.”
South Korean President Lee Jae-myung posted on Facebook that South Korea had completed tariff negotiations with the U.S. after “collecting different opinions and refining our strategy.”
He mentioned that the $350 billion fund will play a significant role in promoting South Korean businesses’ entry into the American market, particularly in advantageous industries such as shipbuilding, semiconductors, batteries, biotechnology, and energy.
Lee Jae-myung also expressed his hope to strengthen industrial cooperation between South Korea and the U.S. through this fund and consolidate the alliance between the two countries. He emphasized that Seoul will prioritize “diplomacy centered on national interests.”
President Trump further announced that South Korea had agreed to a substantial investment purpose fund. This amount will be declared during President Lee Jae-myung’s visit to the White House for bilateral meetings within the next two weeks. Trump also congratulated Lee on his election as President.
If the U.S. and South Korea fail to reach a trade agreement, South Korean exports to the U.S. will face a 25% tariff starting from August 1st.
To date, the Trump administration has reached trade agreements with various countries, including the European Union, Japan, the United Kingdom, the Philippines, Vietnam, and Indonesia. The third round of trade negotiations between the U.S. and Beijing has just concluded, and the decision on whether to continue the tariff truce will depend on Trump’s final determination.
On Wednesday, Trump announced a 25% tariff on Indian goods starting from August 1st, while trade negotiations between the U.S. and India are still ongoing.
With the trade agreement with South Korea resolved, attention will now shift to potential agreements with Canada and Mexico, major trading partners of the United States, in the final days before the August 1st tariff deadline.