South Korea has struck a last-minute trade deal with the U.S. on Wednesday as steep tariffs loomed ahead of a Friday deadline, President Trump announced.
Under the deal, America would impose a 15% tariff and South Korea would provide $350 billion in investments. Seoul would also purchase $100 billion in liquified natural gas or other energy products.
South Korea will also donate an unspecified amount of money in the U.S. for their own investment purposes, Mr. Trump said.
The deal also requires South Korea to be completely open to trade with the U.S., including accepting American products such as cars, trucks and agriculture.
In exchange, South Korea will be charged a 15% tariff for all goods it exports into the U.S., and America will not be charged a tariff, Mr. Trump said. It is one of the lowest tariffs Mr. Trump imposed on a nation since he announced his steep “Liberation Day” tariffs in April.
“I would like to thank the trade representatives who came forward today. It was an honor to meet them and talk about the great successes of their country,” Mr. Trump wrote of South Korea.
The undetermined sum that South Korea plans to invest in the U.S. for its own purposes will be announced within the next two weeks when South Korean President Lee Jae Myung comes to the White House for bilateral talks, Mr. Trump said.
Mr. Trump’s announcement came after three Cabinet-level South Korean officials met with U.S. Commerce Secretary Howard Lutnick in Washington for trade talks and to lobby for a deal on U.S. tariffs.
South Korean Finance Minister Koo Yun-cheoi joined Industry Minister Kim Jung-kwan and Minister for Trade Yeo Han-koo, all sitting down for two hours of talks with Mr. Lutnick, the Finance Ministry said in a statement.
South Korea has been lobbying the Trump administration since last week to reach a deal before Friday, when 25% tariffs were set to kick in. Pressure had been mounting on South Korea to reach a trade deal since Japan cut a deal that reduced Mr. Trump’s threatened tariffs to 15% earlier this month.
The administration’s deals with Japan and South Korea are very similar. In addition to the same tariff rate, Japan pledged $550 billion in U.S. investments.
South Korea is a major U.S. ally and one of the top exporters of computer chips, cars and steel.
Mr. Lutnick reportedly urged South Korea to bring their best and final offers to the table during their meeting, according to a report in the Wall Street Journal.
• Jeff Mordock can be reached at jmordock@washingtontimes.com.