President Donald Trump announced a new trade agreement with South Korea just before his August 1 deadline. In a post on Truth Social, Trump shared that South Korea will invest $350 billion in U.S. investments that he will personally select. Additionally, South Korea has agreed to buy $100 billion worth of liquefied natural gas (LNG) and other energy products.
Under the terms of this deal, goods exported from the U.S. to South Korea will not face tariffs. However, South Korean products sold in the United States will be subject to a 15% tariff, a decrease from the previous 25% tariff imposed by Trump. This new rate is still higher than the tariffs that existed before the renegotiation of trade terms.
Trump emphasized that South Korea will be “completely OPEN TO TRADE” with the United States, suggesting a more favorable trading environment. The United States-Korea Free Trade Agreement, which was ratified in 2011, had previously eliminated tariffs on 95% of goods over its initial five years.
This announcement came shortly after Trump revealed an agreement with Pakistan to collaborate on developing its oil resources. He mentioned that they are in the process of selecting an oil company for this partnership, hinting at future sales to India.
Trump’s recent trade moves also include breakthroughs with the European Union and Japan, indicating a flurry of negotiations as he approaches his deadline to raise tariffs. He expressed optimism that these agreements will significantly reduce the trade deficit and promised to provide a full report on the outcomes later.
Overall, this new trade agreement with South Korea marks a significant step in Trump’s ongoing efforts to reshape international trade relations and bolster U.S. economic interests.
