Trump says US will set 15% tariff on South Korean imports under new deal
The arrangement, announced shortly after Trump met with Korean officials at the White House, came during a blizzard of trade policy announcements ahead of a self-imposed August 1 deadline.
That is when Trump has promised higher tariffs will kick in on U.S. imports from a range of countries. Imports from South Korea, a powerhouse exporter of computer chips, cars and steel, faced a 25% rate.
"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 wrote on Truth Social.
Trump said South Korea had agreed to invest $350 billion in the United States in projects selected by Trump and to purchase $100 billion of liquefied natural gas and other energy products, the U.S. president said. Both steps have been major priorities for Trump, a Republican, in other trade deals.
After Trump's announcement, South Korean President Lee Jae Myung said the country's tariff deal with the United States would put South Korea on an equal or better footing compared with other countries. The claim could not be immediately verified.
He also said the countries had agreed to set up a $350 billion investment fund, out of which $150 billion was aimed at a shipbuilding partnership.
Reuters has not seen the text of the deal or analyzed its terms.
It was not immediately clear how the investment deals would be structured, where the financing would come from, over what time frame they would be implemented and to what extent their terms would be binding on the parties involved. Trump said additional South Korean investments would be announced later.
Lee will visit the White House "within the next two weeks" for a meeting with Trump, the U.S. president added.
Trump also said South Korea would accept American products, including cars, trucks and agriculture into its markets and impose no import duties on them.
Under the deal, the U.S. would also lower tariffs on South Korean-made autos to 15%, from 25%, the South Korean presidential office said. They also said computer chips and pharmaceutical tariffs imposed on the country's U.S.-bound exports would not be worse than other countries, and that South Korea's rice and beef markets would not be open.
South Korean Finance Minister Koo Yun-cheol, Industry Minister Kim Jung-kwan and Minister for Trade Yeo Han-koo had been in Washington for talks with senior U.S. officials and were believed to have met with Trump shortly before the deal announcement.
Pressure had been mounting on South Korea since Japan clinched a deal to cut Trump's threatened tariffs to 15% earlier this month.
Amid the last-minute push by government officials to reach a tariff deal, South Korea's Samsung Electronics (005930.KS), opens new tab inked a $16.5 billion chip deal with Tesla (TSLA.O), opens new tab.
South Korean battery maker LG Energy Solution (373220.KS), opens new tab also signed a $4.3 billion deal to supply Tesla with energy storage system batteries, a person familiar with the matter told Reuters.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
24 minutes ago
- The Independent
Toppled Confederate statue in DC to be replaced in line with Trump's executive order
A statue of a Confederate general that was toppled by protesters in Washington in 2020 will be restored and replaced this fall, in line with President Donald Trump 's pushback on recent efforts to reframe America's historical narrative. The National Park Service announced Monday that the statue of Albert Pike, a Confederate brigadier general and a revered figure among Freemasons, would resume its previous position in Washington's Judiciary Square, a few blocks from the U.S. Capitol. It was the only outdoor statue of a Confederate military leader in the nation's capital. The statue was pulled down with ropes and chains on Juneteenth in 2020 as part of mass protests following the death of George Floyd at the hands of Minneapolis police. Confederate statues around the country were toppled by similar protests while several military bases named for Confederate leaders were renamed. The Pike statue restoration, which is targeted for October, 'aligns with federal responsibilities under historic preservation law as well as recent executive orders to beautify the nation's capital and reinstate pre-existing statues,' the park service said in a statement. In March, Trump issued an executive order entitled 'Restoring Truth and Sanity to American History.' It decried post-Floyd efforts to reinterpret American history, stating, 'rather than fostering unity and a deeper understanding of our shared past, the widespread effort to rewrite history deepens societal divides and fosters a sense of national shame." The order targeted the Smithsonian network of museums as having 'come under the influence of a divisive, race-centered ideology.' It also instructed the Interior Department to restore any statue or display that was 'removed or changed to perpetuate a false reconstruction of American history, inappropriately minimize the value of certain historical events or figures, or include any other improper partisan ideology.' Pike, who died in 1891, is more known for his decades-long stint as a senior leader of the Freemasons than for his Confederate military career. The Masons lobbied Congress for the right to erect the statue on NPS land in 1901 — provided that he be depicted in civilian, not military, garb. But Pike did lead a regiment for the Confederacy during the Civil War. And as the only outdoor statue of a Confederate leader in Washington, D.C., it had been a source of controversy for decades. Even the brief Park Service page on the statue notes that it has 'stirred opposition since it was first planned.' A long history of demands for its removal The D.C. Council asked for its removal in 1992. In 2017, Mayor Muriel Bowser struck an agreement with congressional leaders to eventually remove it. When protesters toppled the statue in 2020 while police officers looked on, Trump — then in his first term — called it 'a disgrace to our Country' on social media and called for their immediate arrests. Congresswoman Eleanor Holmes Norton, Washington's non-voting delegate in Congress, called the Park Service move 'odd and indefensible' in a statement Monday. Norton said she would introduce legislation to remove the statue permanently and place it in a museum. 'I've long believed Confederate statues should be placed in museums as historical artifacts," she said, 'not remain in parks and locations that imply honor.'
The Independent
24 minutes ago
- The Independent
Crucial exemption allows majority of Canadian and Mexican goods to be shipped to US without tariffs
U.S. President Donald Trump raised the tariffs on Canadian goods to 35% last week, but a key exemption for Canada and Mexico shields the vast majority of goods from the punishing duties. Goods that comply with the 2020 United States-Mexico-Canada Agreement trade pact that Trump negotiated during his first term are excluded from the tariffs. Here's a look at Trump's tariffs on the two countries and their exemptions: Most Canadian exports reaching the U.S duty free Canada's central bank says 100% of energy exports and 95% of other exports are USMCA compliant. The Royal Bank estimated that almost 90% of Canadian exports appear to have accessed the U.S. market duty free in April. Canadian Prime Minister Mark Carney said the commitment of the United States to the core of USMCA, reaffirmed again last week, means the U.S. average tariff rate on Canadian goods remains one of its lowest, and over 85% of Canada-U.S. trade continues to be tariff free. 'Canada is better off than any of the trading partners right now because the Americans appear to be relying as a default on USMCA,' said Flavio Volpe, president of the Automotive Parts Manufacturers' Association. 'That gives them the tough tariff headline but also allows them the access to the stuff they need from us. Because of that we're in a relative better position.' Canadian and Mexican companies can claim preferential treatment under the USMCA based on where the products are made. 'The headline news is 35% tariffs but it's somewhat targeted,' said John Manley, Canada's former industry minister, finance minister, foreign affairs minister and deputy prime minister. Manley said Canada is doing okay despite the economic uncertainty. 'There is a lot of resilience I'd say. The Canadian economy has done relatively well, better than most of us expected, and remember that there is no tariffs on any of our energy exports," he said. 25% tariffs on Mexican goods target a small slice of trade Trump said last week he would enter into a 90-day negotiating period with Mexico, also one of America's largest trading partners. The current 25% tariff rates are staying in place, down from the 30% he had threatened earlier. But that 25% only applies to the fraction of Mexico's trade with the U.S. that isn't covered by the USMCA. Shortly after speaking with Trump on Thursday, President Claudia Sheinbaum said that within the 'new commercial world order,' Mexico was still the best positioned nation because of the free trade agreement. 'What's within (USMCA) has no tariff, with the exception of what we already know: autos, steel and aluminum; and what is outside the treaty has 25%,' Sheinbaum said. But Economy Secretary Marcelo Ebrard pointed out that under the USMCA no tariffs were paid on more than 84% of Mexico's trade with the United States. Most imports from Canada and Mexico are still protected by the USMCA, but the deal is up for review next year. U.S. Commerce Secretary Howard Lutnick said last month: 'I think the president is absolutely going to renegotiate USMCA." Preserving the free trade pact will be critical for Canada and Mexico. 'It would be an incredible disruption to lose it especially if you lost it to the levels of tariffs Trump is imposing, 30%, 25% or even 20%. You can absorb a single digit tariff level across the board but you can't adjust that kind of increase,' Manley said. More than 75% of Canada's exports go to the U.S. while more than 80% of Mexico's exports go there. Manley said that depending on how the trade war plays out the risk to the USMCA is very high. 'Uncertainty in business is the enemy of decision making," he said. Charging for access Carney said in a series of recent agreements with other countries that America is, in effect, charging for access to its economy. Manley said the investment thesis for Canada is pretty straightforward as Canada is rich in natural resources, has a skilled labor force, is open to immigration and has unfettered access to the U.S. market, the largest economy in the world. 'If that latter point is no longer the case, we've still got all the others, but we've got to really redevelop the investment thesis for attracting investment to Canada,' Manley said. Trump has some sector specific tariffs, known as 232 tariffs, that are having an impact. There is a 50% tariff on steel and aluminum imports and a 25% tariff on auto imports, though there is a carve-out for Canadian and Mexican made cars. 'Despite our advantages, certain major Canadian industries are being severely impacted by U.S. trade actions. These strategic sectors include autos, steel, aluminum, copper, pharmaceuticals, semiconductors, and of course, softwood lumber,' Carney said Tuesday. 'It is clear we cannot count or fully rely on what has been our most valued trading relationship for our prosperity.' ___
Scottish Sun
24 minutes ago
- Scottish Sun
Rwanda hostel spruced up with £20m of Brit taxpayer cash to receive first deportees — from America
Some will enjoy hotel-quality facilities at Hope Hostel SCHEME TRUMPED Rwanda hostel spruced up with £20m of Brit taxpayer cash to receive first deportees — from America Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) THE Rwanda hostel spruced up with £20million of British taxpayers' money to house our unwanted migrants is to receive its first deportees — from America. Rwanda is taking in 250 migrants thrown out of the US under Donald Trump's mass removal programme. Sign up for Scottish Sun newsletter Sign up 2 Rwanda is taking in 250 migrants thrown out of the US under Donald Trump's mass removal programme Credit: Getty Some will enjoy hotel-quality facilities at Hope Hostel, which was readied under the then-Tory government's deportation scheme last summer. The £700million plan was ditched when Labour won the election. Trump is now pushing ahead with his scheme. A Hope Hostel source told The Sun yesterday: 'We are always ready to provide the best services to the customers.' Rwandan government spokeswoman Yolande Makolo confirmed those arriving in the country would be given support. She added: 'Under the agreement, Rwanda has the ability to approve each individual proposed for resettlement. 'Those approved will be provided with workforce training, healthcare and accommodation support to jump-start their lives in Rwanda.' The initial agreement — signed last month — is for 250 people but can be extended if both countries agree. Britain signed its agreement in 2022. Four UK arrivals were sent to Rwanda but that was under a separate voluntary scheme and did not involve their moving into Hope Hostel. Ismael Bakina, boss of the private operator of the hostel, said the US arrivals would be surprised at the quality of the services offered, adding: 'This is not a prison or a detention centre.' I visited Rwanda's £20m 'migrant hotel' where UK asylum seekers will stay – it's got Premier League on TV & footie pitch
