Official White House photo by Shealah Craighead
US Sets 15% Tariff on South Korean Imports
The United States has finalized a new trade agreement with South Korea, introducing a 15% tariff on South Korean imports starting August 1. This tariff replaces a previously threatened 25% duty and was confirmed by President Donald Trump as part of a broader effort to rebalance trade and secure long-term economic cooperation between the two allies.
South Korea to Invest in US Industries
As part of the deal, South Korea has pledged a massive $350 billion investment in U.S.-based projects. This includes $150 billion earmarked for shipbuilding and $200 billion dedicated to strategic sectors such as semiconductors, nuclear energy, batteries, and biotechnology. In addition, South Korea has committed to importing $100 billion worth of U.S. energy products over the next three and a half years.
Greater Market Access for US Exports
The agreement also opens South Korea’s market to American products. U.S. exporters will now be able to sell cars, trucks, and a wide range of agricultural goods to South Korea with zero import duties. However, some sensitive items like rice and beef remain protected under South Korean trade rules.
Diplomatic Impact and Leadership Dialogue
South Korean President Lee Jae Myung welcomed the deal, calling it a stabilizing step for trade between the two nations. President Trump announced that President Lee would visit Washington in the coming weeks to continue discussions on trade, defense, and regional cooperation.
Broader Trade Strategy in Focus
This agreement is being viewed as a key example of how investment incentives and market access negotiations can defuse escalating tariff threats. Analysts say the U.S.–South Korea deal may serve as a model for other ongoing trade discussions. However, questions remain over the enforceability of investment commitments and how the new tariff structure will impact consumer prices and supply chains.
