S. Korea, US agree to lower tariffs to 15 percent after investment and energy deal

President Donald Trump speaks at an event to promote his proposal to improve Americans access to their medical records in the East Room of the White House Wednesday July 30 2025 in Washington AP YONHAP — President Donald Trump speaks at an event to promote his proposal to improve Americans' access to their medical records in the East Room of the White House, Wednesday, July 30, 2025, in Washington. AP/ YONHAP

SEOUL, July 31 (AJP) - South Korea and the United States have reached a comprehensive trade agreement that will lower mutual tariffs from 25 percent to 15 percent. The deal follows South Korea's pledge to invest $350 billion in the U.S. and purchase $100 billion worth of American energy products.

The announcement was made on Jul. 30 (local time) by U.S. President Donald Trump. He met with the South Korean trade delegation at the White House before posting the details on his social media platform, Truth Social.

"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. "The Deal is that South Korea will give to the United States $350 Billion Dollars for Investments owned and controlled by the United States, and selected by myself, as President."

He added that South Korea had also agreed to buy 100 billion dollars’ worth of liquefied natural gas and other energy products, and to make additional investments "for their investment purposes."

Trump said South Korean President Lee Jae-myung would visit the U.S. within the next two weeks for a bilateral summit, during which both leaders plan to make a joint announcement on the agreement.

As part of the deal, Trump said South Korea had agreed to fully open its market to American products, including cars, trucks, and agricultural goods. "We have agreed to a Tariff for South Korea of 15%. America will not be charged a Tariff." he wrote.

Earlier, Trump had warned that without an agreement, the U.S. would begin imposing 25 percent reciprocal tariffs on South Korean goods starting August 1. Seoul has since been negotiating to protect key export sectors such as automobiles and steel, though no specific product-level changes were mentioned in Trump’s statement.

South Korea’s presidential office confirmed the deal on Thursday, describing it as a major step in stabilizing the country's trade environment.

"The tariff deal removes uncertainty around our export environment," President Lee said in a statement. "Tariffs on our products will now be equal to or lower than those faced by our key export competitors."

Lee also emphasized the significance of the investment agreement, saying, "The 350-billion-dollar fund will help solidify a long-term foundation for cooperation in strategic industries."

Park Sae-jin swatchsjp@ajunews.com