President Donald Trump notched another trade deal Wednesday, announcing a $450 billion agreement with South Korea to “buy down” United States tariffs on the country from 25% to 15%.
The U.S. tariff deadline is August 1, and countries worldwide with a trading relationship with America are scrambling to make last-second deals.
Recommended Stories
- Trump jabs at India in Pakistan trade deal announcement
- Bessent says new 'Trump accounts' are 'backdoor for privatizing Social Security'
- WATCH LIVE: Jerome Powell announces decision on interest rates
South Korea will give the U.S. $350 billion “for Investments owned and controlled by the United States, and selected by myself, as President,” Trump wrote in a Truth Social post, and the country will buy $100 billion of American natural gas or other energy products.
The president added that South Korea also “agreed to invest a large sum of money for their Investment purposes.” It’s unclear how much that is, but it will be announced when Trump meets with South Korean leader Lee Jae Myung.
“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,” he added.
The South Korean Leader said the deal “will play a role in facilitating the active entry of Korean companies into the U.S. market in industries where we have strengths, such as shipbuilding, semiconductors, secondary batteries, biotechnology, and energy,” according to a CNBC translation of his statement in Korean.
He said $150 billion of that allocation will be for “shipbuilding cooperation providing strong support for Korean companies entering the U.S. shipbuilding industry,” adding, “It’s important to achieve mutually beneficial outcomes, not just pursue unilateral gains.”
Lee also said that he hopes “industrial cooperation between Korea and the U.S. will be strengthened and the alliance between Korea and America will also be strengthened,” and that Seoul will keep “diplomacy centered on national interest” as its top principle.
Trump said he was speaking with South Korea earlier Wednesday.
TRUMP JABS AT INDIA IN PAKISTAN TRADE DEAL ANNOUNCEMENT
“I will be meeting with the South Korean Trade Delegation this afternoon. South Korea is currently at a 25% tariff, but they have an offer to buy down those tariffs. I will be interested in hearing what that offer is,” he said.
The president announced a trade deal with Pakistan earlier Wednesday, and previously reached agreements with the European Union, Indonesia, the United Kingdom, Japan, and other countries.