After weeks of frenzied negotiations and mounting economic anxiety, the United States and South Korea have reached a sweeping trade agreement that slashes threatened tariffs and secures billions in investment.
US President Donald Trump announced the trade agreement on his Truth Social platform late on Wednesday.
Under the deal, South Korean exports to the US will face a 15 per cent tariff – down from the 25 per cent levy that had been set to take effect on Friday.
In exchange, South Korea has pledged US$350 billion in US investments, echoing a similar arrangement recently struck with Japan. As with Tokyo’s US$550 billion pledge, the spending will be directed by the US president, with a focus on American industries.
“We have agreed to a Tariff for South Korea of 15 per cent. America will not be charged a Tariff,” Trump wrote on his social media platform. He also announced Seoul’s commitment to “accept American product including Cars and Trucks, Agriculture, etc.”, a move likely to mean that US vehicles built to American standards can enter South Korea without additional restrictions.
