US President Donald Trump announced on Wednesday via a Truth Social post that a new trade agreement with South Korea has been reached. Under the agreement, tariffs of 15% will be imposed on products imported from the country.
Read: Trump: Imposes 50% tariffs on imports from Brazil from August 1st
Trump claimed the agreement includes investments worth $350 billion from South Korea, under American ownership and control, which he emphasized he personally selected.
Additionally, Seoul commits to purchasing energy products from the United States worth $100 billion. According to Trump, South Korea also agreed to fully open its market to American exports, including cars, trucks, and agricultural products.
Products from South Korea briefly faced a “reciprocal” 25% tariff in April, before Trump suspended tariffs affecting dozens of countries. The pause was set to expire on Friday, August 1st.
The new 15% tariff, however, remains higher than the minimum 10% tariff that South Korea imposes and since April, tariffs have been imposed on products from dozens of other countries.
South Korea is the seventh-largest source of US imports. Last year, it sent goods worth $132 billion to the US, according to Commerce Department data. Besides cars and auto parts, semiconductors and electronics were among the top goods Americans purchased from South Koreans.
