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By Robert Birsel and Gabe Whisnant
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President Donald Trump on Wednesday said a new trade agreement with South Korea includes a set 15 percent tariff on its exports to the United States.
Trump shared the news in a statement and on Truth Social, framing the agreement as a major win for American industry and energy producers. He also said that newly elected South Korean President Lee Jae-myung is expected to visit the White House in August.
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Why It Matters
South Korea is Asia's fourth-largest economy and a staunch U.S. ally. Some 28,000 U.S. troops are based there, so a trade deal should help bolster the key alliance.
What to Know
Trump unveiled sweeping import taxes on goods coming into the U.S. from nearly every country in April, sending global markets into a panic.
Most of the tariffs have since been postponed twice, allowing time for bilateral negotiations. In early July, Trump began sending out letters telling countries that higher tariffs would be imposed on dozens of them on August 1.
Trump announced the deal with South Korea shortly after its finance minister, Koo Yun-cheol, and other top negotiators met the president in an effort to finalize an agreement before Friday.
"We have agreed to a Tariff for South Korea of 15%. America will not be charged a Tariff," Trump wrote on Truth Social.
As part of the deal, South Korea has committed to purchasing $100 billion in U.S. energy exports and allocating $350 billion for investments that Trump said would be "owned and controlled by the United States, and selected by myself, as president."
South Korea had agreed that it would be "completely" open to trade with the U.S., and that it would accept U.S. products, including cars, trucks and agricultural goods.
The deal included a South Korean agreement to buy $100 billion of U.S. liquefied natural gas or other energy products, and "South Korea has agreed to invest a large sum of money for their investment purposes," Trump added. "This sum will be announced within the next two weeks when the President of South Korea, Lee Jae Myung, comes to the White House for a Bilateral Meeting."
Commerce Secretary Howard Lutnick later wrote on X that the auto tariff rate for South Korea would be set at 15 percent, lower than the current 25 percent, while noting that South Korea would not be treated "any worse than any other country" in terms of tariffs on semiconductors and pharmaceuticals.
Trump announced a framework deal with Japan, Asia's second-largest economy, on July 22, including a 15 percent tariff on Japanese goods, down from a threatened rate of 25 percent. Trump also said Japan would invest $550 billion into the U.S. and "open" its economy to American autos and rice.
The U.S. and the EU announced a deal on July 27 that includes a 15 percent tariff on 70 percent of EU goods entering the U.S., down from a threatened 30 percent.
Trade officials from the U.S. and China, Asia's largest economy and the world's second-largest, met for two days in Stockholm this week after which China's top trade official said the two sides had agreed to work on extending an August 12 deadline.
Earlier, Trump's tariffs on Chinese goods totaled 145 percent and China's counter-tariffs on U.S. products reached 125 percent, raising the prospect of a damaging trade war. But on May 12, the sides agreed to a 90-day truce to roll back those levies to 30 percent and 10 percent respectively.
Under a deal announced on May 8, The United Kingdom will face a 10 percent baseline tariff on its goods while Trump agreed to cut tariffs on British autos, steel and aluminum, among other pledges. The U.K. promised to reduce levies on U.S. products like olive oil, wine and sports equipment.
A deal with the Philippines announced on July 22 includes a 19 percent tariff. Under a July 15 agreement with Indonesia, its goods will face a 19 percent tariff. Vietnamese goods will face a 20 percent U.S. tariff under a deal announced on July 2. U.S. goods will enter Vietnam duty free.
What People Are Saying
Commerce Secretary Howard Lutnick wrote on X: "These trade deals reflect the clear understanding that President Trump's tariff and trade agenda has the power to reshape global commerce."
South Korean President Lee Jae Myung said in a post on Facebook: "We have cleared a major hurdle. Through this agreement, the government has eliminated uncertainties in the export environment and created conditions for our companies to compete on equal or superior terms with major countries."
South Korea's presidential chief of staff for policy, Kim Yong-beom, told reporters: "The U.S. strongly pushed for opening agricultural and livestock markets during negotiations, but both sides agreed not to further open Korea's rice and beef markets given the food security concerns and sensitivity of the agricultural sector."
What Happens Next
Attention will be focused on whether China and India, the latter being Asia's third-largest economy, can reach deals with Trump.
Reporting by the Associated Press contributed to this article.
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