U.S. President Donald Trump announced a new trade agreement with South Korea that introduces a 15% tariff on goods imported from the country.
Details of the Agreement
Trump indicated that the previously threatened 25% tariff would be lowered to 15%. He stated that American imports into South Korea would not face any duties, and the country would affirm its commitment to trade by accepting U.S. automobiles.
Economic Outcomes
Trade between South Korea and the U.S. reached $131.5 billion in 2022, making South Korea America's sixth-largest trading partner. Additionally, South Korea recently avoided a technical recession, registering a 0.6% economic growth in Q2 2025.
Future Trade Relations
Trump also discussed South Korea investing $350 billion in U.S.-controlled assets and purchasing $100 million in liquefied natural gas. Ongoing negotiations remain unresolved with Canada, Mexico, and China.
The new trade agreement with South Korea represents another step in Trump's strategy for securing trade deals with key partners and may strengthen economic ties between the nations.
