Trump Announces 15% Tariff on South Korean Imports Amid Trade Agreement

On July 30, U.S. President Trump announced that the U.S. will impose a 15% tariff on imports from South Korea, lower than the previously threatened 25%. This agreement comes as South Korea has agreed to invest $350 billion in the U.S. Following a meeting with South Korean officials at the White House, Trump declared the deal amidst a series of trade policy announcements from the U.S. government, with the previously set tariff implementation date of August 1 approaching. Trump stated on his social media platform, 'The U.S. has agreed to a comprehensive and complete trade agreement with South Korea, and we have agreed to impose a 15% tariff on South Korea, while the U.S. will not face tariffs from South Korea.' In addition to the tariffs, Trump mentioned that South Korea will invest $350 billion in the U.S. for projects he selects and will purchase $100 billion worth of U.S. energy products. Furthermore, South Korea will allow U.S. products, including automobiles and agricultural products, to enter its market without imposing import tariffs. South Korea's new president, Lee Jae-myung, stated that the agreement removes uncertainty from the export environment and that the tariffs imposed by the U.S. are lower than or on par with those of major competitors, claiming 'We have crossed a significant hurdle.' Trump had previously indicated that starting August 1, higher tariffs would be imposed on imports from multiple countries. South Korea, a major exporter of computer chips, automobiles, and steel, faced a 25% tariff on goods exported to the U.S. prior to this last-minute trade agreement on July 30. Kim Yong-beom, head of the policy office at the South Korean presidential office, stated at a press conference that of the $350 billion investment, $150 billion will go towards shipbuilding collaboration projects, while $200 billion will be allocated to fields such as chips, nuclear power, batteries, and biotechnology. He also mentioned that existing investment plans by South Korean companies would be included in this funding. Additionally, Kim noted that South Korea's energy procurement from the U.S. will include liquefied natural gas, liquefied petroleum gas, crude oil, and a small amount of coal. U.S. Commerce Secretary Howard Lutnick stated that South Korea's energy procurement will be completed 'within the next three and a half years.' He also indicated that the tariffs on South Korean automobiles will be set at 15%, and that South Korea's semiconductor and pharmaceutical exports will not face stricter restrictions than similar products from other countries. Steel, aluminum, and copper are not covered under the new agreement.