South Korean President claims that the new trade agreement will eliminate “uncertainties” in the trade relationship.
US President Donald Trump has declared a new trade agreement with South Korea, just before the looming August 1 deadline for imposing higher tariffs on numerous countries.
Through the “full and complete” trade agreement, South Korean products will face a 15% tariff, while US exports will be exempt from duties, as announced by Trump on his Truth Social platform on Wednesday.
South Korea will also commit $350 billion in investments controlled by the US and will purchase $100 billion in liquefied natural gas and other energy products, Trump stated.
The East Asian nation will thankfully invest a “large sum” for its investment purposes, with the exact amount to be revealed within two weeks when South Korean President Lee Jae-myung visits the White House.
“It is also agreed that South Korea will be fully open to trade with the United States, and that they will accept American goods, including Cars and Trucks, Agriculture, and more,” Trumps wrote.
Lee, who took office in June after former president Yoon Suk-yeol’s brief presidency during a leadership vacuum caused by his martial law declaration, stated that the deal “eliminated uncertainties” and guaranteed that South Korea would pay tariffs at equal or lower rates than its competitors.
“The key is not to seek unilateral advantages but to achieve mutually beneficial outcomes,” Lee posted on Facebook.
“This agreement aligns the US interests in revitalizing its manufacturing industry with our determination to improve the competitiveness of our companies in the US market. Through this, we foresee stronger industrial cooperation between Korea and the US, solidifying the Korea-US alliance even further.”
South Korea faced potential 25% tariffs starting August 1 and additional duties on steel, aluminum, vehicles, and auto parts if no deal was reached.
South Korea’s KOSPI stock index saw a positive reaction to the news, with the benchmark stock index up nearly 0.4% in early trading on Thursday.
Stay tuned for more developments…
Through the “full and complete” trade agreement, South Korean products will face a 15% tariff, while US exports will be exempt from duties, as announced by Trump on his Truth Social platform on Wednesday.
South Korea will also commit $350 billion in investments controlled by the US and will purchase $100 billion in liquefied natural gas and other energy products, Trump stated.
The East Asian nation will thankfully invest a “large sum” for its investment purposes, with the exact amount to be revealed within two weeks when South Korean President Lee Jae-myung visits the White House.
“It is also agreed that South Korea will be fully open to trade with the United States, and that they will accept American goods, including Cars and Trucks, Agriculture, and more,” Trumps wrote.
Lee, who took office in June after former president Yoon Suk-yeol’s brief presidency during a leadership vacuum caused by his martial law declaration, stated that the deal “eliminated uncertainties” and guaranteed that South Korea would pay tariffs at equal or lower rates than its competitors.
“The key is not to seek unilateral advantages but to achieve mutually beneficial outcomes,” Lee posted on Facebook.
“This agreement aligns the US interests in revitalizing its manufacturing industry with our determination to improve the competitiveness of our companies in the US market. Through this, we foresee stronger industrial cooperation between Korea and the US, solidifying the Korea-US alliance even further.”
South Korea faced potential 25% tariffs starting August 1 and additional duties on steel, aluminum, vehicles, and auto parts if no deal was reached.
South Korea’s KOSPI stock index saw a positive reaction to the news, with the benchmark stock index up nearly 0.4% in early trading on Thursday.
Stay tuned for more developments…
