President Donald Trump announced Wednesday a trade deal with South Korea ahead of his deadline for worldwide tariff hikes.
Trump said the U.S. will impose a 15 percent tariff on South Korean products and will not be subject to reciprocal tariffs. He also celebrated South Korea’s decision to give the U.S. $350 billion to invest and purchase $100 billion of U.S. energy products.
“The Deal is that South Korea will give to the United States $350 Billion Dollars for Investments owned and controlled by the United States, and selected by myself, as President. Additionally, South Korea will purchase $100 Billion Dollars of LNG, or other Energy products and, further, South Korea has agreed to invest a large sum of money for their Investment purposes,” Trump posted.
Trump revealed that the unspecified investment sum will be announced when South Korean President Lee Jae Myung visits the White House in the coming weeks.
“It is also agreed that South Korea will be completely OPEN TO TRADE with the United States, and that they will accept American product including Cars and Trucks, Agriculture, etc. We have agreed to a Tariff for South Korea of 15%. America will not be charged a Tariff,” Trump added.
It marks the second major trade deal Trump has announced in recent days after the president celebrated a new trade deal with the European Union over the weekend. The EU deal features a 15 percent tariff on the bloc’s goods and a promise from the EU to purchase $750 billion worth of U.S. energy and investment $600 billion more into the U.S. economy.
Trump has also negotiated deals with Japan, the Philippines, Vietnam, and other U.S. trading partners that will bolster foreign investment, open their markets, and potentially shake up the international trading system.
Earlier on Wednesday, Trump made clear he is not extending his August 1 deadline for imposing steep tariffs on countries worldwide. Trump announced in April his “liberation day” tariff regime designed to massively increase tariffs on almost every country in the world. He delayed the implementation of most of those tariffs for 90 days following stock market turmoil and panic on Wall Street.
Separately, Trump boasted that his administration was busy negotiating trade deals and mentioned an agreement with Pakistan for the U.S. to help them develop their oil reserves. He also announced 25 percent tariffs on Indian imports despite its strong relations with the U.S. and importance to southeast Asia.
The president pointed out India’s purchases of Russian energy and reiterated his call for Russia to end its war against Ukraine. Trump has threatened steep tariffs on Russia and its economic allies if Russia does not agree to a cease-fire to end the war soon.