Trump Announces 15% Tariff on South Korean Imports

Mitrade
Updated
coverImg
Source: DepositPhotos

U.S. and South Korea Agree on Reduced Tariffs and Investment Pact

President Donald Trump announced on Wednesday that the United States will impose a 15% tariff on South Korean imports, lowered from the previously threatened 25%, as part of a new trade agreement aimed at easing tensions with the key Asian ally and one of America’s top-10 trading partners. As part of the deal, South Korea committed to investing 350 billion in U.S. - based projects selected by the Trump administration and agreed to purchase American energy products worth 100 billion.

The announcement followed a White House meeting between Trump and South Korean officials amid a flurry of trade negotiations globally, as nations hurried to finalize deals before a scheduled tariff increase deadline on August 1. Trump hailed the agreement on his social media platform, Truth Social, describing it as a "Full and Complete Trade Deal" with the Republic of Korea.

Responses from Seoul

South Korean President Lee Jae Myung, who took office in June, welcomed the agreement for resolving uncertainties in trade relations and noted that the U.S. tariff rates would be kept at or below the levels applied to major competitors. Lee described the accord as surpassing a significant obstacle in a Facebook post. 

Trump revealed that Lee is expected to visit the White House within two weeks to meet him for the first time. According to Trump, South Korea will lift import duties on American autos and agricultural products entering its market. Nevertheless, top Korean officials confirmed no further opening of rice and beef markets, with ongoing discussions concerning U.S. demands around food safety standards.

Citi economist Kim Jin-wook observed that while the headline tariff reduction appears favorable to the U.S., South Korea’s maintenance of non-tariff barriers and tariff parity with Japan and the EU provides Seoul with advantages.

Former South Korean trade minister Cheong In-kyo agreed that the country avoided the most severe outcomes but cautioned that public opinion might change depending on the execution of the 350 billion investment commitment. The specifics of the investments - such as their exact scope,funding sources,timelines,and enforceability—remain uncertain.

Kim Yong−beom, a senior figure in South Korea’s presidential office, stated that 150 billion will focus on shipbuilding while $200 billion targets semiconductor production, nuclear energy, batteries, and biotechnology, emphasizing that some ambiguity in the deal helps safeguard fund usage.

South Korea Faces New U.S. Tariffs Amid Political Turmoil and Growing Trade Pressure

Despite South Korea’s existing comprehensive free trade agreement with the United States, it was not exempt from new tariffs amid growing U.S. trade protectionism. Negotiations unfolded amid political turbulence in South Korea, marked by the April impeachment of former President Yoon Suk Yeol following disputed martial law attempts. The urgency intensified as Japan secured its trade deal with the U.S. earlier this month.

President Trump has singled out South Korea for its sizable trade surplus and costs linked to hosting approximately 28,500 American troops stationed to deter North Korean threats. South Korea’s trade surplus with the U.S. reached a record 55.7 billion last year, up 25% from a year earlier.

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Banco Santander Misses Q2 Profit Forecast by Narrow Margin, Reaffirms 2025 OutlookBanco Santander (BME:SAN) reported a 10% year-on-year increase in pre-tax profit for the second quarter, reaching €5.12 billion. Despite the gain, the figure came in slightly below analysts’ expectations, missing consensus by about 1%, and prompting a nearly 2% drop in the bank’s shares on the Madrid exchange.
Author  Mitrade
7 Month 30 Day Wed
Banco Santander (BME:SAN) reported a 10% year-on-year increase in pre-tax profit for the second quarter, reaching €5.12 billion. Despite the gain, the figure came in slightly below analysts’ expectations, missing consensus by about 1%, and prompting a nearly 2% drop in the bank’s shares on the Madrid exchange.
placeholder
US President Trump clarifies 20% tariffs on Chinese imports of semiconductors, electronics Late Sunday, US President Donald Trump took to his own social media application, Truth Social, and clarified that there will be no tariff exemption on semiconductors and the electronics supply chain, as these products will be subject to the existing 20% tariffs on fentanyl and not the 145% hike.
Author  FXStreet
4 Month 14 Day Mon
Late Sunday, US President Donald Trump took to his own social media application, Truth Social, and clarified that there will be no tariff exemption on semiconductors and the electronics supply chain, as these products will be subject to the existing 20% tariffs on fentanyl and not the 145% hike.
placeholder
Elon Musk tags Milton Friedman as three Forbes Billionaires ask Trump to end Trade WarTesla CEO, and Department of Government Efficiency lead, Elon Musk takes a stand against Trump’s tariffs positive a viral Milton Friedman video on X. Meanwhile other top Wall street  billionaires have also launched media campaigns to avert the looming US trade war.  
Author  FXStreet
4 Month 09 Day Wed
Tesla CEO, and Department of Government Efficiency lead, Elon Musk takes a stand against Trump’s tariffs positive a viral Milton Friedman video on X. Meanwhile other top Wall street  billionaires have also launched media campaigns to avert the looming US trade war.  
placeholder
Apple Q4 revenue tops estimates; $1.1B tariff impact forecastApple projected its revenue for the current quarter ending in September well above Wall Street forecasts on Thursday.
Author  Mitrade
41 mins ago
Apple projected its revenue for the current quarter ending in September well above Wall Street forecasts on Thursday.
placeholder
Eurozone Economy Posts Modest Growth in Q2, Faces Headwinds from U.S. TariffsThe eurozone economy saw a slight improvement in the second quarter of 2025, growing by 0.1%, according to Eurostat data released Tuesday. This modest expansion outpaced expectations for flat growth, but still marked a sharp slowdown from the 0.6% expansion recorded in the first quarter.
Author  Mitrade
7 Month 30 Day Wed
The eurozone economy saw a slight improvement in the second quarter of 2025, growing by 0.1%, according to Eurostat data released Tuesday. This modest expansion outpaced expectations for flat growth, but still marked a sharp slowdown from the 0.6% expansion recorded in the first quarter.