Trump announces "complete" trade deal with South Korea, tariffs set at 15% for exports to the US

US President Donald Trump on Wednesday declared that the United States has reached a "complete" trade deal with South Korea, setting an overall import tariff rate of 15% for South Korean exports to the US. This agreement means that tariffs will be significantly reduced from the 25% Trump previously threatened in a "tariff letter" to Seoul earlier this month.

Trump also announced on his social media platform, Truth Social, that South Korea will invest $350 billion into projects owned and controlled by the US, with the US President selecting the investment opportunities.

South Korean President Lee Jae-myung stated on Facebook that the country had concluded negotiations on import tariffs with the US, having gathered diverse opinions and adjusted their strategy accordingly. In a translated statement, Lee mentioned that the $350 billion fund would help facilitate South Korean companies entering the US market in industries where they have strengths, including shipbuilding, semiconductors, batteries, biotechnology, and energy.

Additionally, Trump confirmed that as part of the agreement, South Korea would purchase $100 billion worth of liquefied natural gas (LNG) and other energy products from the US. He also mentioned that South Korea had agreed to make significant investments, although the exact amount was not specified. He added that there would be no tariffs on US goods under the deal.

As of 2024, South Korea’s actual tariff rate for imports from the US is approximately 0.79%.

President Lee concluded in his post, “I hope this will strengthen industrial cooperation between South Korea and the US, and further reinforce the alliance between our countries.” However, he also emphasised that South Korea would continue to prioritise "national interest-focused diplomacy" as its core principle.