'$350 billion investment, 15% tariff': Trump announces trade deal with South Korea, says 'US won't be charged' - All you need to know
&imwidth=600&imheight=450&format=webp&quality=medium "'$350 billion investment, 15% tariff': Trump announces trade deal with South Korea, says 'US won't be charged' - All you need to know")
US President Donald Trump Photograph: (Reuters)
President Trump announced a new trade deal with South Korea, including a $350 billion U.S.-controlled investment, a 15% import tariff, and $100 billion in South Korean purchases of American energy products.
US President Donald Trump on Wednesday (July 30) announced a new trade agreement with South Korea, which includes a $350 billion investment deal and a 15% tariff on goods coming into the United States. In a post on Truth Social, Trump said, “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 that South Korea would also purchase $100 billion worth of LNG or other energy products. The country is expected to announce an additional investment in the coming weeks during a bilateral meeting between Trump and South Korea’s President Lee Jae Myung at the White House.
No tariffs on US goods, says Trump
Trump said the agreement includes full access for American products in South Korea. “It is also agreed that South Korea will be completely OPEN TO TRADE with the United States, and that they will accept American product including Cars and Trucks, Agriculture, etc,” he stated. He confirmed a 15% tariff would apply to goods from South Korea, but that US products would not face any tariffs in return. “America will not be charged a Tariff,” he said.
Previous tariffs paused, new ones in place
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In April, South Korea briefly faced a 25% tariff before the US paused duties for several countries. That pause was due to expire on Friday. The new 15% tariff is higher than the 10% minimum many countries have paid since April.
South Korea joins the European Union and Japan in facing the 15% tariff, despite trade agreements. However, it’s still unclear whether Seoul secured any relief on specific sectors like cars or pharmaceuticals — a key concern, as car exports are among South Korea’s biggest to the US.
US-South Korea trade ties
South Korea is the US’s seventh-largest source of imports, sending $132 billion worth of goods to the country last year. These included semiconductors, cars, and electronics. The US, in turn, exported $66 billion in goods to South Korea, mainly oil, gas, and industrial equipment.
Despite years of free trade agreements, Trump’s tariff policy has strained South Korea’s economy. Its GDP shrank by 0.1% in the first quarter of this year, the first contraction in four years.
Trump concluded his announcement by praising South Korea’s leadership, saying, “It was an Honor to meet them, and talk about the Great Success oftheirCountry!”
