US President Donald Trump on Wednesday revealed that the United States had reached a "full and complete" trade agreement with South Korea. As part of the deal, the US will now impose a 15% tariff on South Korean imports, instead of the earlier threatened 25% rate.
This agreement aims to ease trade tensions with one of America's closest allies in Asia and a major trading partner.
Deal Finalised After White House Talks
The announcement came shortly after a meeting between Trump and South Korean officials at the White House. It also comes ahead of Trump’s August 1 deadline, by which he had planned to impose higher tariffs on imports from several countries.
Trump shared the news on Truth Social, saying, “I am pleased to announce that the United States of America has agreed to a Full and Complete Trade Deal with the Republic of Korea.”
U.S.-SOUTH KOREA TRADE DEAL SECURED 🇺🇸 🇰🇷
— The White House (@WhiteHouse) July 30, 2025
“I am pleased to announce that the United States of America has agreed to a Full and Complete Trade Deal with the Republic of Korea.” - President Donald J. Trump pic.twitter.com/rasBdTAYqD
South Korea Pledges $350 Billion Investment
Trump said South Korea will invest $350 billion in the United States through various projects he will personally select. Additionally, South Korea has agreed to buy $100 billion worth of US energy products, including liquefied natural gas.
Trump stressed that these were central points of his trade agenda.
South Korean President Lee Jae Myung responded positively, saying the deal would give South Korea “equal or even better treatment compared to other nations.”
Investment Fund and Shipbuilding Deal
President Lee also said both nations would set up a $350 billion investment fund, with $150 billion set aside for a shipbuilding partnership. However, details on how the fund would work or be financed were not shared.
Trump noted that more investments from South Korea would be announced soon. He also mentioned that President Lee would visit the White House within the next two weeks.
Better Access for US Goods in Korea
Trump said the deal would give American exporters greater access to South Korea's market. The country has agreed to allow imports of US cars, trucks, and agricultural goods without any import taxes.
In return, the US will reduce its tariffs on South Korean cars from 25% to 15%, according to South Korea’s presidential office.
They also confirmed that:
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Tariffs on South Korean chips and pharmaceutical products will not be more restrictive than those on similar products from other countries.
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US rice and beef will not get further entry into South Korea’s markets.
High-Level Delegation from Seoul in Washington
A team of top South Korean officials was already in Washington for talks. This included:
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Finance Minister Koo Yun-cheol
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Industry Minister Kim Jung-kwan
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Trade Minister Yeo Han-koo
They are believed to have met with Trump just before the deal was announced.
Pressure After Japan's Deal
South Korea faced pressure to reach a deal after Japan signed a similar trade agreement with Trump earlier this month. As the talks neared completion, major South Korean firms signed new deals with US companies, possibly to support the final agreement.