South Korea-U.S. Tariff Deal Reduces Trade Uncertainty, Spurs $350B Investment

South Korea and the United States have finalized a tariff agreement that lowers reciprocal and auto-specific tariffs from 25% to 15% in exchange for South Korea's commitment to invest $350 billion in the U.S., including $100 billion in energy purchases. South Korean President Lee Jae Myung emphasized that the deal removes economic uncertainties for the export-reliant nation and strengthens bilateral cooperation in strategic industries such as shipbuilding, semiconductors, and biotechnology. The agreement was welcomed by major South Korean business groups as it enhances competitive advantages and fosters a more predictable trade environment. Despite the tariff deal, alliance issues such as defense spending and the role of U.S. troops in Korea are expected to be discussed in upcoming meetings between President Lee and President Donald Trump, with a focus on the U.S. push for allies to share greater defense responsibilities and strategic flexibility. South Korea's government is also urged to monitor public concerns and implement measures to protect national interests amid the broader reorganization of the global trade order. While the tariff deal avoids further market access demands in sensitive sectors like beef and rice, it raises questions about the future of the South Korea-U.S. alliance and economic challenges ahead.