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Trump announces 'full and complete' trade deal with South Korea, cuts tariffs to 15%
US President Donald Trump mimics a weightlifter while he speaks at a dinner he hosts for Republican Senators at Mar-a-Lago in Palm Beach, Florida, US, February 7, 2025. File Image/Reuters
US President Donald Trump on Wednesday announced a 'full and complete' trade deal with South Korea, saying the United States will impose a 15 per cent tariff on South Korean imports.
This move marks a reduction from the previously threatened 25 per cent rate and comes as part of efforts to ease tensions with one of America's top trading partners and allies in Asia.
The announcement followed a meeting between Trump and South Korean officials at the White House and came amid a flurry of trade policy updates ahead of Trump's self-imposed August 1 deadline, when higher tariffs on imports from multiple countries are set to take effect.
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'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 said in a post on his Truth Social platform.
As part of the deal, Trump said South Korea had agreed to invest $350 billion in the United States through projects selected by him, and to purchase $100 billion worth of liquefied natural gas and other energy products. He emphasised that both elements were central to his trade priorities.
Following Trump's remarks, South Korean President Lee Jae Myung said the agreement would give South Korea equal or even better treatment compared to other nations.
$350 billion commitment from Seoul
He also revealed that the two countries had agreed to set up a $350 billion investment fund, with $150 billion designated for a shipbuilding partnership. However, no details were immediately available on how the investments would be structured, funded, or implemented.
Trump mentioned that additional investments from South Korea would be announced later and added that President Lee would visit the White House within the next two weeks.
Trump said the deal would also expand US market access in South Korea. He noted that South Korea had agreed to accept American cars, trucks, and agricultural products without imposing import duties.
Meanwhile, the US would reduce tariffs on South Korean-made autos from 25 per cent to 15 per cent, according to the South Korean presidential office. They also stated that tariffs on computer chips and pharmaceutical products exported to the US would not be more restrictive than those for other countries, and confirmed that South Korea's rice and beef markets would remain closed to further US entry.
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South Korean Finance Minister Koo Yun-cheol, Industry Minister Kim Jung-kwan, and Minister for Trade Yeo Han-koo were in Washington for high-level meetings with US officials and are believed to have met Trump shortly before the announcement.
Japan also strikes trade deal with Trump
Pressure had been building on South Korea since Japan secured a similar tariff cut deal with Trump earlier in the month. As talks reached their final stages, major South Korean companies announced fresh deals with US firms.
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