U.S., South Korea Seal USD350B Trade Deal
(MENAFN) President Donald Trump confirmed Wednesday that the United States has sealed a major trade agreement with South Korea, featuring a 15% tariff on imports from the East Asian nation. In return, Seoul has committed to directing $350 billion into US-based investments and purchasing $100 billion worth of American energy products.
Trump took to Truth Social to praise the outcome, emphasizing that no reciprocal tariffs would be imposed on American exports. He hailed the pact as a “Full and Complete Trade Deal” aimed at “stabilize economic relations” with a long-standing ally in the region.
South Korean President Lee Jae-myung credited the result to extensive domestic consultations and planning. In a Facebook statement, he noted that Seoul “gathered diverse opinions and refined our strategies” before finalizing the deal.
Lee also stated that the multi-billion-dollar investment package will enhance South Korea’s industrial footprint in the United States. Key sectors expected to benefit include shipbuilding, semiconductors, secondary batteries, biotechnology, and energy.
According to Commerce Department data, South Korea exported $132 billion worth of goods to the United States in 2024—dominated by automobiles, electronics, and semiconductors—while American exports to South Korea reached $66 billion, primarily in industrial machinery, oil, and gas. This created a goods-only trade deficit of $66 billion for the US, a gap that narrows when services are factored in.
The South Korea deal is one of several bilateral trade agreements negotiated ahead of Trump’s self-imposed August 1 tariff deadline. Similar arrangements were struck with the UK, Japan, EU, and other partners in recent weeks.
In April, South Korea was temporarily hit with a 25% “reciprocal” tariff before the finalized agreement reduced it to 15%—still above the new standard 10% rate now applied to many countries.
The EU, which completed its own agreement last week, also accepted a 15% tariff. The terms drew criticism from analysts who viewed the deal as heavily one-sided. A White House advisor bluntly described the EU’s approach as the bloc “bending the knee” before Trump.
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