Trump Announces 15% Tariffs For South Korea Under New Deal
Just hours before a looming deadline, South Korea clinched a trade agreement with the U.S., securing a 15% tariff rate instead of the threatened 25%. The deal, announced by President Donald Trump, includes a massive $350 billion investment from Seoul into U.S. industries, with $150 billion going directly into shipbuilding, which both sides say will benefit American jobs and revitalize the naval sector.
Trump, posting on Truth Social, declared the deal “Full and Complete,” emphasizing that he personally selected the investment projects. South Korea’s President Lee Jae Myung praised the outcome for stabilizing exports without opening up sensitive agricultural markets, like rice and beef, which was a red line that Seoul refused to cross despite strong pressure from Washington. The U.S. will also receive $100 billion worth of energy purchases from South Korea over the next 3.5 years.
Commerce Secretary Howard Lutnick confirmed that the new tariff will apply to key exports like cars and semiconductors, but steel and aluminum will stay taxed at 50%. Meanwhile, questions linger about the specifics of the investment fund. While some of it includes previous commitments under the Biden administration, South Korea insists it secured enough safeguards. The two presidents will meet in Washington within two weeks to discuss unresolved military spending issues, leaving the door open for more costly negotiations.
