US President Donald Trump announced that he has reached a trade agreement with South Korea that includes the imposition of a 15% tariff on its exports to the United States and investment commitments by Seoul for USD 350 billion.
“It has also been agreed that South Korea will be fully OPEN TO TRADE with the United States and will accept American products, including cars and trucks, agricultural products, etc.,” Trump wrote on his social media account.
The president added that, under the agreement,"the United States will not pay any tariffs" and that South Korea has committed to purchasing $100 billion in U.S. liquefied natural gas and other energy products.
It was not immediately clear how the investment agreements would be structured or what the timeframe would be. Trump said additional investments would be announced later.
Meanwhile, President Lee Jae Myung stated that the tariff agreement with the United States would put South Korea on an equal footing or better than other countries.
He added that both countries had agreed to create a $350 billion investment fund, of which $150 billion would be allocated to a shipbuilding partnership.
Trump also said South Korea would accept U.S. products, including cars, trucks, and agricultural products, into its markets and would not impose import tariffs.
The announcement represents a further step in Trump's trade strategy, as he has used the imposition of tariffs as a leverage tool in negotiations with allies and rivals.
