South Korea and US Strike Trade Deal: Tariffs to be Reduced

Sun Nov 30 2025 23:51:52 GMT+0200 (Eastern European Standard Time)

In a significant move, South Korea and the United States have agreed to a major trade deal, including reduced tariffs on cars and parts as South Korea commits to $350 billion in investments.

South Korea and the US have announced a comprehensive trade agreement following discussions between their leaders. The key aspects include maintaining reciprocal tariffs at 15% while lowering those on automobiles and parts. In exchange, South Korea will invest $350 billion in the US. This agreement comes amid ongoing tensions and ongoing trade negotiations between the two nations.

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 the agreement maintains reciprocal tariffs at 15%, along with a reduction in taxes on car and car parts. Furthermore, South Korea will invest a total of $350 billion in the US, including $200 billion in direct cash investments and $150 billion in shipbuilding.

US President Donald Trump, currently on a week-long trip in Asia, referenced the deal as 'pretty much finalized' during a dinner following an almost two-hour discussion but withheld specific details.

A previous trade deal was announced in late July, which outlined South Korea's plans to invest $350 billion to mitigate the impact of tariffs. However, discussions regarding the investment structure have faced stagnation.

Historically, both nations have been strong allies; however, tensions soared recently following the detention of hundreds of South Koreans in a US immigration raid.

Looking ahead, Trump is scheduled to meet with Chinese President Xi Jinping at an upcoming APEC summit, marking their first face-to-face meeting since Trump took office amid global tariffs.

During his discussions in South Korea, Trump received a golden crown from the South Korean president as well as the Grand Order of Mugunghwa, the highest decoration bestowed by South Korea, recognizing his contributions to peace on the Korean Peninsula.

The trade deal is particularly significant for South Korea's electronics, chip, and auto industries, which have been vocal about needing clarity in the midst of tariff complexities.

Trump's visit was underscored by ongoing North Korean tensions, highlighted by missile tests prior to his arrival, with Trump expressing a willingness to meet North Korean leader Kim Jong Un at a later date.

A small but vocal protest against Trump took place outside the summit venue, while a counter-protest celebrated his policies. The shifting perceptions between South Korea and China were also notably present during Trump's visit.