Washington: U.S. Treasury Secretary Scott Bessent stated that President Donald Trump made adjustments to South Korea's trade offer to finalize a beneficial deal for American exporters. The announcement came following a negotiation session that resulted in South Korea agreeing to significant investments in the United States.
According to Yonhap News Agency, President Trump revealed on Wednesday that his administration would reduce "reciprocal" tariffs on South Korea to 15 percent from the initially proposed 25 percent. This concession was made in exchange for South Korea's commitment to invest US$350 billion in the U.S. and to purchase American liquefied natural gas and other energy products.
Bessent explained during a CNBC interview that South Korean representatives presented a compelling offer, which prompted President Trump to enhance the terms slightly. "We reached a very good agreement where they will have 15 percent tariffs. They will buy a substantial amount of U.S. energy and make a substantial investment into the U.S. both from their sovereign resources and via private companies," Bessent noted.
The trade agreement involves dismantling various trade barriers to American exports, which Bessent emphasized, would lead to increased energy exports and benefits for American farmers and exporters.
Highlighting a change in the South Korean government during the negotiations, Bessent described South Korea as a "special case," acknowledging their transitional phase due to the recent elections.
The announcement concludes months of negotiations that began after Trump's April declaration of 25 percent reciprocal tariffs on South Korea. Trump's administration has also finalized trade agreements with other nations, including Britain, the European Union, Japan, Vietnam, Indonesia, and the Philippines, with varying tariff rates.
President Trump has utilized tariffs strategically to boost federal revenue, reduce trade deficits, and support domestic manufacturing, maintaining that the U.S. has been disadvantaged in trade relations for years.