WASHINGTON — President Trump announced Wednesday evening that he had reached an agreement with South Korea that will include $350 billion in investment from Seoul and lock in a 15% tariff rate for the Asian nation.
“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, 79, wrote on Truth Social.
The Deal is that South Korea will give to the United States $350 Billion Dollars for Investments owned and controlled by the United States, and selected by myself, as President,” he added. “Additionally, South Korea will purchase $100 Billion Dollars of LNG, or other Energy products and, further, South Korea has agreed to invest a large sum of money for their Investment purposes.”
The full investment amount will be announced when South Korean President Lee Jae Myung visits the White House, which Trump said would happen “within the next two weeks.”
South Korea will be also be “completely OPEN TO TRADE with the United States” and accept American products, including “Cars and Trucks, Agriculture, etc.,” the president added.
While South Korean imports to the US will be slapped with a 15% duty, Trump said the US “will not be charged a Tariff.”
South Korea faced 25% tariffs on its exports to the US as part of Trump’s “Liberation Day” package that was announced April 2, but later delayed for 90 days.
The president reupped his threat in a letter to Lee July 7 – one of several sent to world leaders threatening tariffs.
In the note, Trump warned that the major car and electronics-exporting nation would be hit with the levy in order to “eliminate the Trade Deficit disparity we have with your Country.”
The president had set an Aug. 1 deadline for countries to agree to one-for-one trade deals with Washington or face potentially steep reciprocal tariffs.
Earlier Wednesday, Trump met with South Korean officials at the White House to hammer out details of the agreement.
“I would like to thank the Trade Representatives who came forward today,” the president said. “It was an Honor to meet them, and talk about the Great Success of their Country!”
The US trade deficit with South Korea – America’s sixth-largest trading partner among individual nations – was $66 billion last year, a 29% increase from 2023, according to the Office of the US Trade Representative.
Economic relations between the US and South Korea were previously governed by a free trade agreement that took effect in 2012. That deal eliminated duties on almost all bilateral trade between the two countries.
