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Home News International News

South Korea expects reduction in U.S. tariffs under new trade agreement

in International News, News, Top Story
South Korea expects reduction in U.S. tariffs under new trade agreement
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A previously threatened 25% tariff imposed by the United States on South Korean automobiles is set to be reduced by 10% as part of a new trade agreement aimed at easing tensions with one of America’s top ten trading partners and a key Asian ally.

The agreement, announced shortly after former President Donald Trump met with South Korean officials at the White House, comes as both nations seek to secure advantageous terms ahead of a self-imposed August 1 deadline.

As part of the last-minute deal, South Korea is expected to invest $350 billion in U.S.-based projects—an essential element of the agreement. “I am pleased to announce that the United States of America has agreed to a Full and Complete Trade Deal with the Republic of Korea,” Trump stated on Truth Social.

The negotiations served as an early test for South Korean President Lee Jae-myung, who assumed office in June following a snap election. President Lee remarked that the deal had eliminated uncertainty in the export environment and ensured that U.S. tariffs would remain lower than or equal to those faced by South Korea’s major competitors.

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