President Trump announced a reduced 15% tariff on South Korean imports, down from a planned 25%, as part of a new trade deal.
US President Donald Trump announced a reduced 15% tariff on imports from South Korea on 30 July 2025, down from the previously threatened 25%, as part of a last-minute trade deal to ease tensions.
The agreement came just before the 1 August deadline when higher tariffs were set to take effect on imports from several countries, including South Korea.
“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,” Trump wrote on Truth Social.
South Korea and the US reached a trade deal under newly elected President Lee Jae Myung, who aims to reduce export uncertainty and keep US tariffs competitive.
As part of the trade deal, South Korea pledged USD 350 billion in US investments and USD 100 billion in energy purchases. The country also agreed to allow US autos and agricultural products duty-free access, though it will not further open its rice and beef markets.
Of the announced USD 350 billion fund, USD 50 billion will be dedicated to a shipbuilding partnership and USD 200 billion will be invested in sectors such as nuclear power, semiconductors, batteries, and biotechnology. Additionally, energy purchases will span LNG, LPG, crude oil, and some coal.
The US will set a 15% tariff on South Korean autos, and the country’s semiconductor and pharmaceutical exports would receive treatment equal to that of other nations. Steel, aluminium, and copper are excluded from the agreement.
