US President Donald Trump on Wednesday unveiled a new pact with South Korea that will impose a 15% tariff on Korean exports to the US. Trump hailed the agreement as “full and complete,” announcing it just days before the August 1 deadline he had set for raising tariffs on several countries. Without the deal, South Korean goods would have been hit with a 25% duty.
Trump said the accord would prevent US exports from facing new duties, while South Korean goods will now be subject to the reduced 15 percent tariff. The announcement came as part of a series of trade-related moves by the White House this week, which also included fresh tariffs on Brazil and India.
The deal, announced after talks at the White House, will see South Korea purchase $100 billion in US liquefied natural gas and other energy products and channel major investments into shipbuilding, semiconductors, batteries, biotechnology, and energy. Of the $350 billion, $150 billion will be allocated to joint shipbuilding projects, while $200 billion will cover the technology and energy sectors.
South Korea successfully resisted US demands to open its politically sensitive rice and beef markets further, though tariffs on its steel, aluminum, and copper exports remain unchanged.
President Donald Trump 90% of profits from the $350 billion fund would benefit the American people. South Korean President Lee Jae Myung hailed the agreement as a breakthrough that “eliminated uncertainty” and put his country on equal footing with Japan and the EU in the US market.
South Korea, America’s sixth-largest trading partner, had faced significant economic pressure, with exports accounting for over 40% of GDP and growth projected to slow to 0.8% in 2025.
Despite the relief, South Korean carmakers Hyundai and Kia’s shares fell sharply on Thursday, reflecting lingering investor caution over Trump’s volatile trade policies.
