The US and South Korea have reached a broad trade deal, both countries have said following talks between their leaders.
South Korea's presidential aide, Kim Yong-beom, noted an agreement to maintain reciprocal tariffs at 15%, with plans to decrease taxes on automobile and car parts.
As part of this agreement, South Korea will invest $350 billion in the US, which includes $200 billion in cash and $150 billion in shipbuilding.
US President Donald Trump described the deal as pretty much finalized after a dinner meeting that lasted nearly two hours, but he refrained from providing additional details.
This new trade deal follows a previous announcement in July that involved significant South Korean investments aimed at mitigating impending tariffs. However, negotiations had stalled regarding the investment structure.
The alliance between the US and South Korea faces challenges, particularly after recent immigration raids that affected numerous South Koreans in the US.
Trump is set to meet Chinese President Xi Jinping shortly, marking their first in-person meeting since tariffs were imposed on countries worldwide earlier in his presidency. Describing economic security as a priority, Trump emphasized the importance of fair trade practices.
In an elaborate ceremonial welcome, Trump was presented with notable gifts including a golden crown and the Grand Order of Mugunghwa, South Korea's highest honor, adding a diplomatic flourish to the proceedings.
While talks proceeded, concerns lingered among South Korea’s industries about the clarity and future of tariff regulations. Trump previously imposed a tariff rate of 25% on Seoul, which had been reduced to 15% following negotiations.
Despite significant international pressures, Trump remains optimistic about striking beneficial agreements with both South Korea and China, hinting at a robust economic strategy moving forward.
