South Korea and US Finalize Trade Deal with Lowered Tariffs

Thu Oct 30 2025 04:31:46 GMT+0200 (Eastern European Standard Time)

In a significant move, South Korea and the United States have finalized a new trade agreement, reducing tariffs from 25% to 15% as part of broader economic collaboration.

Following high-level discussions, South Korea and the US have agreed to a new trade deal that includes a reduction in reciprocal tariffs from 25% to 15%. South Korea's investment in the US is set to reach $350 billion, covering cash and shipbuilding sectors. The agreement reflects ongoing collaborations despite past tensions. US President Donald Trump characterized the discussions as productive while simultaneously preparing for an upcoming meeting with Chinese President Xi Jinping.

The US and South Korea have reached a broad trade deal, both countries have said following talks between their leaders.

South Korea's presidential aide, Kim Yong-beom, stated that the two sides would lower reciprocal tariffs from 25% to 15%, as was agreed earlier this year.

In addition, South Korea will invest $350 billion in the US, which includes $200 billion in cash investments and $150 billion in shipbuilding, according to Kim.

US President Donald Trump, currently on a week-long trip in Asia, remarked that the deal was pretty much finalized after a lengthy dinner discussion following their talks, though he did not provide further details.

Trump expressed satisfaction, saying, We had a tremendous meeting today with South Korea, noting that a lot was determined during their discussions.

He also commented on topics revolving around national security as the talks proceeded. Despite the anticipation of a breakthrough prior to the meeting, many sectors within South Korea, particularly electronics and automotive industries, were left wanting clarity amidst the ongoing tariff uncertainty.

Earlier this year, a 25% tariff was imposed on Seoul, which South Korea managed to negotiate down to 15% contingent upon their sizable investment commitments in the US.

However, the White House later increased its demands during negotiations, seeking further cash investments from South Korea.

The alliance between the two nations has been strengthened historically, but recent tensions were noted after several South Koreans were detained in a recent immigration raid in the US.

After the South Korean negotiations, Trump is set to meet Chinese President Xi Jinping on Thursday during the Asian-Pacific Economic Cooperation (Apec) summit in Gyeongju. The impending encounter is expected to address trade issues that have been contentious between the two superpowers.

Trump stated he anticipates a favorable outcome, saying, We’ve been talking a lot over the last month and I think we’re going to have something that’s gonna be very, very satisfactory to China and to us.

During an earlier stint in Japan, Trump signed an agreement regarding rare earth minerals and another document affirming a new phase in US-Japan relations, reiterating the previously negotiated tariff agreement.

Observing the geopolitical landscape, Trump expressed hopes to navigate relationships with North Korea, despite recent missile launches by the North, reflecting ongoing regional security concerns.