South Korean leader says agreement eliminates ‘uncertainties’ in trade environment.
United States President Donald Trump has announced a trade deal with South Korea, the latest agreement unveiled ahead of his August 1 deadline for the imposition of steep tariffs on dozens of countries.
Under the “full and complete” trade deal, South Korean goods will be subject to a 15 percent tariff, while US exports will not face duties, Trump said on his Truth Social platform on Wednesday.
South Korea will also pay $350bn for investments “owned and controlled” by the US and purchase $100bn in liquefied natural gas and other energy products, Trump said.
The East Asian country also agreed to invest a “large sum” of money for its own investment purposes, Trump said, with the amount to be announced “within the next two weeks” when South Korean President Lee Jae-myung visits the White House.
“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,” Trump wrote.
Lee, who took office in June after a months-long leadership vacuum prompted by impeached former president Yoon Suk-yeol’s short-lived declaration of martial law, said the agreement “eliminated uncertainties” and ensured that South Korea would pay tariffs at equal or lower levels than its competitors.
“The key is not to pursue unilateral benefits but to derive mutually beneficial results,” Lee said in a post on Facebook.
“This agreement is the outcome of aligning the US interests in revitalising its manufacturing industry with our determination to expand the competitiveness of our companies in the US market. Through this, we anticipate that industrial cooperation between Korea and the US will be further strengthened, and the Korea-US alliance will become even more solid.”
South Korea had faced a 25 percent tariff from August 1 if it did not reach a deal, in addition to separate duties on steel, aluminium, vehicles and auto parts.
South Korea’s KOSPI rose on the news, with the benchmark stock index up nearly 0.4 percent in early trading on Thursday.
More to follow…