The United States and South Korea have finalized a major trade agreement that will bring significant investment into the American economy, following a nearly two-hour meeting between President Trump and South Korean President Lee Jae Myung.
President Trump called the agreement “pretty much finalized,” saying it reflects his administration’s push for fair and reciprocal trade. According to officials, the deal maintains a 15% reciprocal tariff rate—down from the 25% previously imposed by the U.S.—and includes new provisions to lower taxes on cars and vehicle parts, per the BBC.
South Korea will invest $350 billion in the United States under the agreement, with $150 billion directed toward shipbuilding and $200 billion in additional cash investments, capped at $20 billion per year, according to NBC News. The White House had earlier pressed Seoul for increased financial commitments during negotiations.
Speaking at the APEC CEOs Luncheon on Wednesday, President Trump highlighted the deal as part of his broader effort to restore balance to U.S. trade relations across Asia. “We’re signing one trade deal after another to balance our relationships on the basis of reciprocity,” he said, noting recent agreements with Malaysia, Cambodia, and Japan.
President Trump will meet with Chinese President Xi Jinping on Thursday, where trade is expected to be a key topic of discussion.