The deal, which builds on a preliminary understanding reached in July 2025, was concluded during a summit between the leaders of both nations.
RF Report
The US and Korea (Rep.) signed a major trade agreement on 29 October 2025.
The key aspect of this agreement is the reduction of US tariffs on automobiles and auto parts imported from Korea (Rep.), from 25% to 15%.
In exchange for this tariff reduction, Korea (Rep.) has committed to a USD 350 billion investment in the US. This investment will be structured in two main parts: a direct cash infusion of USD 200 billion and a USD 150 billion investment focused on shipbuilding cooperation.
To manage the economic impact, the investments will be capped at USD 20 billion annually, with profits to be shared between the two countries.
The deal, which builds on a preliminary understanding reached in July 2025, was concluded during a summit between the leaders of both nations.
