The U.S. and South Korea have struck a significant trade deal that will lead to lower tariffs and substantial investments in both economies.
Reduction of Tariffs on South Korean Exports
Under the new agreement, tariffs on South Korean exports to the U.S. will decrease to 15% from the previously planned 25%. This also applies to automobile tariffs, which will be reduced from 25% to 15%, aligning with terms offered to Japan and the European Union.
South Korea's Investment in U.S. Industries
In exchange for the reduction in tariffs, South Korea has agreed to invest $350 billion in U.S. industries, which is expected to boost growth in sectors such as shipbuilding, semiconductors, clean energy, and biotech, according to President Lee Jae Myung.
Impact on the Crypto Industry and Related Technologies
Although the crypto industry was not directly addressed in the U.S.-S. Korea trade deal, it may still experience indirect effects. The anticipated influx of foreign investments into U.S. infrastructure could complicate the situation in the crypto market. Key sectors involved in the trade deal, such as semiconductors and clean energy, are beginning to adopt blockchain technologies for tracking supply chains and managing infrastructure.
The trade agreement between the U.S. and South Korea may have long-term ramifications for both economies. The reduction of tariffs and significant investments create opportunities for growth across various sectors, including a potential impact on the cryptocurrency industry.
