Trump says U.S. strikes trade deal with South Korea
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Vehicles awaiting export at a South Korean port. Photo: Anthony Wallace/AFP via Getty Images
President Trump said Wednesday the U.S. has struck a trade deal with South Korea, matching the structure of pacts with Japan and the EU.
Why it matters: The deal brings clarity to the U.S. relationship with a major trading partner, and will be a relief to automakers and other heavily exposed industries.
Yes, but: Like the Japan deal, it also leaves unanswered questions about exactly how a giant investment mechanism will be deployed, and who will benefit.
The latest: Commerce Secretary Howard Lutnick said the Trump administration had also struck trade deals with Cambodia and Thailand on Wednesday.
- Lutnick mentioned the deals toward the end of an interview on Fox News' "Hannity," but did not elaborate further on details of the agreements.
Driving the news: Trump, in a Truth Social post, said South Korean imports would face a 15% tariff, while U.S. exports to the country would not be tariffed.
- South Korea will buy $100 billion in U.S. energy products, he said, and the deal includes a $350 billion investment fund. It was not immediately clear how that deal would be structured or how the Korean government would recoup its investments.
- Trump said South Korea would separately "invest a large sum of money for their Investment purposes," with the amount to be hashed out in a bilateral meeting at the White House with President Lee Jae Myung in coming weeks.
By the numbers: South Korea is one of the largest U.S. trading partners, the source of more than $131 billion in U.S. imports last year.
What to watch: With the South Korea deal addressed, attention in the last days before an Aug. 1 tariff deadline will shift to potential deals with top trade partners Canada and Mexico.
Go deeper: Trump ends de minimis tariff exemption, sets copper and Brazil levies
Editor's note: This story has been updated with background on the South Korea trade deal and comment from Commerce Secretary Howard Lutnick.
