President Donald Trump has announced that the United States will impose a 15% tariff on imports from South Korea as part of a new trade agreement, avoiding the 25% levy that was threatened. The deal, which covers steel and other goods, was confirmed on Truth Social and follows talks at the White House.
South Korean President Lee Jae Myung said the arrangement puts his country on an equal or better footing compared with other nations. He described it as 'the first major trade challenge' for his administration and added that uncertainty over export conditions had been eliminated.
The agreement includes a $350bn investment fund, with $150bn earmarked for a shipbuilding partnership. South Korea will also invest $350bn in US projects selected by Trump and purchase $100bn of liquefied natural gas and other energy products, although the timeframe remains unclear.
The 15% tariff rate matches those levied on Japan and the European Union. In return, South Korea will accept US cars, trucks and agricultural products duty-free, while the US lowers its auto tariff on South Korean-made vehicles from 25% to 15%. Tariffs on computer chips and pharmaceuticals will be no worse than those on other countries, and South Korea's rice and beef markets remain closed.
President Lee is expected to visit the White House within two weeks. The deal was finalised after South Korean ministers met with Trump, following pressure from Japan's earlier agreement. Separate commercial deals included a $16.5bn chip agreement between Samsung Electronics and Tesla, and a $4.3bn battery supply deal between LG Energy Solution and Tesla.
