The United States and South Korea have agreed on a broad trade deal following discussions between their leaders. South Korean presidential aide Kim Yong-beom announced that reciprocal tariffs will remain at 15%, as previously agreed, although taxes on cars and parts will be reduced. Additionally, South Korea has committed to investing $350 billion in the U.S., comprising $200 billion in cash and $150 billion in shipbuilding.
U.S. President Donald Trump, currently on a week-long visit to Asia, indicated that the deal was “pretty much finalized” after a nearly two-hour dinner meeting with South Korean President Lee Jae Myung. While discussing national security and other topics, Trump mentioned that significant decisions were made during their meeting. However, both sides had tempered expectations of a breakthrough prior to these talks, leading to disappointment among industries in South Korea, including electronics and automotive sectors, which were hoping for clarity amidst tariff uncertainties.
Earlier this year, Trump had imposed a 25% tariff on imports from South Korea, which was subsequently negotiated down to 15%. This reduction followed South Korea’s promise to invest in the U.S. and to purchase $100 billion in liquefied natural gas, although U.S. demands for additional cash investments intensified during negotiations.
The U.S. has been grappling with rising tensions with North Korea, particularly following recent missile tests. Trump expressed a desire to meet North Korean leader Kim Jong Un but indicated that arrangements were not feasible during this trip.
In a ceremonial welcome, Trump received a golden crown and the Grand Order of Mugunghwa, South Korea’s highest honor, recognizing his contributions to peace on the Korean Peninsula. The formal meetings were accompanied by protests both for and against Trump, reflecting the polarized sentiments in South Korea regarding his administration.
Source: https://www.bbc.com/news/articles/cly4jz9zr50o?at_medium=RSS&at_campaign=rss