Washington (TDI): On Wednesday, United States President Donald Trump announced a trade agreement with South Korea amid the August 1st tariff deadline.
According to the complete trade agreement, South Korean products will face 15% tariffs, whereas US exports will not face duties.
US and South Korean authorities confirmed that the 15% tariff is going to be imposed on vehicles, which is a win for the East Asian country’s car industry that was earlier subjected to a 25 percent tariff on vehicles and auto parts.
South Korean officials said that they have rejected requests for greater US access to its rice and beef markets, a politically fraught problem that has led to fierce resistance from South Korean farmers.
US Commerce Secretary Howard Lutnick said that, according to the trade deal the South Korea’s steel industry, which is the world’s 6th largest industry, will still face the previous tariff as the agreement didn’t lower the tariff on steel, copper, and aluminum.
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Trump also announced that South Korea will contribute about $350bn for investments, which will be “owned and controlled” by the US, and in return will purchase $100bn in liquefied natural gas and other energy products.
It is reported that South Korea has also agreed to invest a “large sum” of money for its investment purposes, Trump said, with the amount to be announced “within the next two weeks” during a visit by Lee Jae-myung, President of South Korea, to the White House.
Trump wrote on Truth Social, “It is also agreed that South Korea will be completely OPEN TO TRADE with the United States, and that they will accept American products, including Cars and Trucks, Agriculture, etc.”
President Lee on Facebook said that “This agreement is the outcome of aligning the US interests in revitalizing its manufacturing industry with our determination to expand the competitiveness of our companies in the US market.
Through this, we anticipate that industrial cooperation between Korea and the US will be further strengthened, and the Korea-US alliance will become even more solid.” He also added that the investment is the fund that will support South Korean industries to enter the US.
An IR student whose interest lies in diplomacy and current affairs and a part time debater
