South Korea to buy $100 billion in energy and invest $350 billion in projects selected by Trump in exchange for new 15% tariffs.
On July 30, President Donald Trump wrote on the social network Truth Social that the US will impose a 15% tariff on imports from South Korea as part of a deal to ease tensions with its top trading partner and key ally in Asia. The deal was announced shortly after Trump met with South Korean officials at the White House. Previously, the country, a major exporter of computer chips, cars and steel, faced a 25% tariff.
Trump said South Korea had agreed to invest $350 billion in the US in projects selected by him and buy $100 billion in liquefied natural gas (LNG) and other energy products. Both moves are among the top priorities of the US President and the Republican Party, as are other trade deals.
US sets 15% tariff for South Korea
US President Donald Trump announced on Truth Social that he had reached a “comprehensive trade agreement” with South Korea.
“South Korea will provide the United States with $350 billion in US-owned and controlled investments that I personally select as president. In addition, South Korea will purchase $100 billion in liquefied natural gas (LNG) or other energy products.
South Korea has agreed to invest a large amount of money for their investment purposes. This amount will be announced in two weeks when South Korean President Lee Jae Myung visits the White House,” Trump said.
According to the South Korean presidential office, the US will also reduce tariffs on Korean-made cars from 25% to 15%. Tariffs on South Korean computer chips and pharmaceuticals exported to the US will not be worse than those of other countries, and South Korea’s rice and beef markets will not be opened.
The tariff terms reached by South Korea with the US are almost identical to those announced by the US and Japan a few days earlier.
In addition, Seoul also agreed to open its market to US cars, trucks and agricultural products. In return, South Korea will pay a 15% import tax to the US, while US goods entering South Korea will be exempted from tariffs.
Confirming this information, Mr. Lee said that the agreement just reached with the US “puts South Korea in an equal or better position compared to other countries”.
He also said that the two countries have agreed to establish a government investment fund worth 350 billion USD, of which 150 billion USD will be spent on shipbuilding cooperation.
South Korean Finance Minister Koo Yun-cheol, Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo were in Washington for talks with senior US officials and reportedly met with Trump shortly before the deal was announced. Pressure on South Korea has mounted since Japan agreed to cut Trump’s threatened tariffs to 15% earlier this month.
The country’s major businesses have also joined the tariff negotiations. Samsung Electronics previously signed a $16.5 billion chip deal with Tesla. Battery maker LG Energy Solution also signed a $4.3 billion deal to supply Tesla with batteries for its energy storage systems.