U.S.-South Korea Finalize $350B Deal Cut Tariffs to 15%

U.S. President Donald Trump announced a major trade agreement with South Korea that reduces tariffs on South Korean imports to the U.S. from 25% to 15%, aligning with similar deals with Japan and the European Union. As part of the deal, South Korea will invest $350 billion in U.S. projects, including $150 billion for shipbuilding and $200 billion in sectors like semiconductors, nuclear energy, batteries, and biotechnology, while also committing to purchase $100 billion worth of American liquefied natural gas and other energy products. The agreement ensures that U.S. imports to South Korea will not be subject to tariffs, while South Korean exports to the U.S. will face the 15% tariff, a rate confirmed by U.S. Commerce Secretary Howard Lutnick and welcomed by the Trump administration as beneficial for American industries. South Korea’s President Lee Jae-myung expressed support for the deal, which aims to boost bilateral trade and investment, though some concerns remain about the impact of tariffs on South Korean car exports. Analysts view the agreement as a strategic shift that could stimulate U.S. economic growth, especially in energy and manufacturing sectors, while providing South Korean firms preferential access to the U.S. market amid global trade uncertainties. The deal reflects a broader trend of restructured global supply chains and capital flows under the Trump administration's trade policies.