Washington: U.S. President Donald Trump announced on Wednesday that his administration has reached an agreement to reduce tariffs on South Korea to 15 percent from the initially proposed 25 percent. This decision is part of a broader strategy involving substantial investments and increased market access, with a summit scheduled with South Korean President Lee Jae Myung at the White House in two weeks.
According to Yonhap News Agency, Trump shared details of the agreement in a social media post following discussions with South Korean officials, including Finance Minister Koo Yun-cheol. These negotiations aimed to finalize the deal before the looming deadline for the originally planned blanket tariffs. The U.S. President expressed satisfaction with the "full and complete" trade deal, highlighting that South Korea will contribute $350 billion for U.S.-controlled investments.
The agreement outlines South Korea's commitment to open its market to U.S. products, including automobiles, trucks, and agricultural goods. Additionally, South Korea will purchase $100 billion worth of U.S. liquefied natural gas and other energy products. Trump indicated that further details of South Korea's investment plans would be disclosed during President Lee's upcoming visit to the White House.
These developments conclude several months of intense negotiations initiated after Trump's announcement of 25 percent reciprocal tariffs on South Korea in April. South Korea's proposals, such as the "Make American Shipbuilding Great Again" initiative, were part of their efforts to strengthen ties and support the U.S. shipbuilding industry against China's dominance.