President Donald Trump announced Wednesday that the United States will impose a 15 percent tariff on imports from South Korea, part of what he described as a “full and complete trade deal” between the two countries.
In a post on his Truth Social platform, Trump claimed South Korea had agreed to invest $350 billion in the U.S. economy, including $100 billion in purchases of liquefied natural gas and other energy products.
The 15 percent tariff is notably lower than the 25 percent rate Trump had previously threatened and aligns with tariff levels set in recent U.S. trade deals with Japan and the European Union.
Trump added that South Korea would invest an additional, unspecified “large sum of money,” the details of which will be announced during an upcoming White House meeting with South Korean President Lee Jae-myung, scheduled within two weeks.
“I want to congratulate President Lee on his electoral success,” Trump said, referring to Lee’s recent inauguration following a snap election triggered by the impeachment of his predecessor, Yoon Suk Yeol, in December.
South Korea’s Finance Minister Koo Yun-cheol credited the country’s support for revitalizing the U.S. shipbuilding industry as a major factor behind the agreement.
“I believe MASGA made the greatest contribution to reaching today’s agreement,” Koo told reporters in Washington, referencing the ‘Make American Shipbuilding Great Again’ initiative — a nod to Trump’s “MAGA” slogan.
“Our world-class shipbuilding companies, equipped with the highest level of design and construction capabilities, are expected to help revive the U.S. shipbuilding industry,” he said.
Shares in Hanwha Ocean, a major South Korean shipbuilder that owns a shipyard in Philadelphia, surged more than 15 percent in Thursday trading following the announcement.
A diplomatic milestone
President Lee described the trade agreement as his administration’s “first major trade challenge” and a “significant hurdle” that has now been cleared.
“We’ve eliminated uncertainty surrounding export conditions and ensured that U.S. tariffs on our exports are now either lower than or equal to those imposed on our major trade competitors,” Lee wrote in a Facebook post.
The deal is seen as an early diplomatic and economic victory for Lee, who now leads Asia’s fourth-largest economy — one heavily dependent on exports.
“This agreement represents the convergence of U.S. interests in revitalizing its manufacturing sector and our determination to strengthen Korean companies’ competitiveness in the American market,” Lee said.
Since returning to the White House in January, Trump has ramped up tariffs across the board, imposing a blanket 10 percent duty on imports from both allies and rivals, with rates scheduled to rise further on August 1.
In addition to South Korea, Trump on Wednesday imposed 25 percent tariffs on imports from India and 50 percent on goods from Brazil.
The steep tariff on Brazil is widely viewed as a retaliatory move linked to what Trump called a “witch hunt” against former Brazilian president Jair Bolsonaro, a far-right ally currently facing a criminal trial.
AFP
