US to Impose 15% Tariff on South Korean Imports Under New Trump Trade Deal
US to Impose 15% Tariff on South Korean Imports Under New Trump Trade Deal
President Donald Trump has confirmed that the US will impose a 15% tariff on South Korean imports, declaring it a “full and complete trade deal.” The move comes just before the 1 August deadline for countries to negotiate trade terms with the US or face even higher duties.
South Korea had been under pressure to strike a deal, especially after Japan secured a similar 15% rate earlier this week. Without an agreement, South Korean goods were set to be hit with a 25% tariff.
The agreement includes a massive $350 billion investment by South Korea into the US economy, a point being celebrated in Seoul. Last year, South Korea recorded a trade surplus of over $56 billion with the US.
The new tariff will cover major South Korean exports, including cars and semiconductors. However, steel and aluminium will be taxed at a higher 50%, matching the global rate introduced by President Trump.
South Korean President Lee Jae Myung welcomed the outcome, noting that his country avoided opening its rice and beef markets further to US imports—two sensitive areas for South Korean farmers. These sectors had been red lines during negotiations due to strong domestic opposition and planned farmer protests.
A key highlight of the agreement is South Korea’s promise to invest $150 billion in American shipbuilding. The funds will help revive the US shipbuilding industry and strengthen naval defense. South Korea is one of the world’s top shipbuilders, second only to China.
The remainder of the pledged investment reportedly includes funds promised during the previous Biden administration but not yet delivered. These funds will go toward boosting US industries such as car manufacturing, semiconductor production, and electric vehicle batteries.
Crucially, the deal does not alter the US-South Korea military alliance or the financial terms of US troop deployment. President Trump has previously demanded that South Korea pay more for US military support. That issue is expected to be addressed when President Lee visits Washington for a summit in two weeks.
Since returning to office in January, Trump has introduced a wave of import taxes, arguing that they protect American jobs and industry. However, critics say the tariffs are inflating prices for US consumers and disrupting global trade.
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