US President Donald Trump has announced via his social media account that the US and South Korea have finalized a comprehensive trade agreement just hours before the August 1 deadline for tariff negotiations.
Tariff reductions and investment commitments
As part of the deal, reciprocal tariffs on Korean imports will be reduced from 25 percent to 15 percent, easing trade tensions between the two nations. In return, South Korea will invest $350 billion in the US, with specific projects to be selected by President Trump. An additional, undisclosed investment sum will also be announced within two weeks, following a bilateral meeting at the White House between Trump and South Korean President Lee Jae Myung.
Energy and market access provisions
The agreement also includes a $100 billion purchase commitment by South Korea for US liquefied natural gas (LNG) or other energy products, marking a significant step in strengthening energy cooperation. Moreover, South Korea will fully open its markets to American exports, removing all tariffs on US goods such as automobiles, trucks, and agricultural products.
