Trump Announces 15% Tariff Deal with South Korea Ahead of Deadline

SEOUL — U.S. President Donald Trump has finalized a trade agreement with South Korea that imposes a 15% tariff on imports from the East Asian nation, just hours before a broader tariff hike was set to take effect.

The deal, which Trump described as a “full and complete trade deal,” averts a looming 25% tariff and includes a major $350 billion investment commitment from South Korea into the U.S. economy.

Under the agreement, the 15% tariff will apply to South Korea’s key exports, cars and semiconductors, while steel and aluminum products will be taxed at a higher global rate of 50%. Despite the concessions, South Korea avoided pressure to further open its rice and beef markets, a red line for its agricultural sector.

South Korean President Lee Jae Myung welcomed the agreement, calling it a balanced outcome that protects national interests while maintaining competitiveness with countries like Japan, which secured a similar tariff rate last week.

Of the pledged $350 billion investment, $150 billion will support U.S. shipbuilding, including military vessels, an area where South Korea is a global leader. The rest is expected to flow into sectors like automotive, semiconductors, and electric vehicle battery manufacturing, much of which had been previously pledged under past administrations.

The agreement does not affect the long-standing U.S.-South Korea military alliance. However, cost-sharing negotiations for U.S. troop deployment in South Korea are expected to resume during President Lee’s upcoming visit to Washington in two weeks.

Since returning to office, Trump has revived aggressive trade policies, imposing new import tariffs on multiple countries in a move he claims will boost U.S. manufacturing. Critics argue the measures risk global economic instability and could lead to higher consumer prices in the United States.