30.07.2025 23:55

President Trump announced a revised trade agreement with South Korea on Wednesday, significantly reducing the threatened tariffs on South Korean goods. Instead of the 25% tariff previously threatened earlier this month, a 15% levy will now be imposed on goods imported from South Korea. This announcement, shared on his Truth Social platform, represents a concession following intense negotiations.

This newly reached agreement offers a crucial advantage to American businesses: no tariffs will be levied on American products imported into South Korea. Trump highlighted South Korea's commitment to "OPEN TO TRADE," specifically mentioning the acceptance of increased US automobile imports. The deal comes just days before Trump's self-imposed Friday deadline for securing trade agreements with numerous countries, a deadline accompanied by threats of substantial tariffs for nations failing to comply.

South Korea joins a growing list of major trading partners who have reached agreements with the United States before the deadline. Japan secured a deal last week, and the European Union reached an accord on Sunday. However, negotiations remain ongoing with the US's three largest trading partners – Canada, Mexico, and China – leaving the future of those trade relationships uncertain.

The agreement extends beyond mere tariff reductions. Trump stated that South Korea has committed to substantial investments, promising $350 billion in investments chosen and controlled by the United States. Further commitments include the purchase of $100 million in liquefied natural gas or other energy resources, along with additional unspecified large-scale investments from South Korea itself. These significant financial commitments underscore the extensive nature of the newly negotiated deal.

The economic significance of this agreement cannot be overstated, considering the substantial volume of trade between the two nations last year. The United States imported $131.5 billion worth of goods from South Korea, making South Korea America's sixth-largest trading partner, while South Korea imported $65.5 billion in US goods. The long-term effects of this new agreement on this robust trade relationship remain to be seen, particularly considering the lack of an official confirmation statement from the South Korean government.