Historic Trade Agreement Reached Between U.S. and Korea

In a landmark announcement, U.S. President Donald Trump revealed a significant reduction in reciprocal tariffs on Korea from 25% to 15%, contingent upon Korea's commitment to invest $350 billion in the United States. This development marks a pivotal moment in U.S.-Korea trade relations.

Details of the Agreement

President Trump elaborated on the deal via his social media platform, Truth Social, stating, "The United States of America has agreed to a Full and Complete Trade Deal with the Republic of Korea." The agreement includes Korea's purchase of $100 billion in LNG or other energy products and further investments in the U.S. selected by Trump himself.

Upcoming Summit and Further Announcements

A bilateral meeting between President Trump and South Korea's President Lee Jae-myung is scheduled within the next two weeks at the White House, where additional details of the investment will be disclosed. Trump also extended congratulations to President Lee on his recent election victory.

Trade Openness and Tariff Specifics

The agreement ensures South Korea will be fully open to trade with the United States, accepting American products across various sectors including automobiles, trucks, and agriculture. Notably, the U.S. will not face any tariffs under this new deal.

Background and Negotiations

This agreement comes after intense negotiations between the two nations, with the U.S. initially threatening to impose a 25% reciprocal tariff on Korea starting August 1. The Korean government's delegation, including key ministers, played a crucial role in securing the terms of the deal.