Trump Announces 15% Tariff on South Korean Imports, Welcomes Investment
In a significant trade development, President Donald Trump has revealed that the United States will impose a 15% tariff on imports from South Korea. This announcement comes as part of a broader trade deal that Trump has hailed as “full and complete.”
The President made these remarks via his Truth Social platform, stating, “South Korea will give to the United States $350 Billion Dollars for Investments,” citing an additional $100 billion commitment for liquefied natural gas or other energy products. Furthermore, he asserted that Seoul would invest an unspecified “large sum of money,” with the details set to be revealed during South Korean President Lee Jae Myung’s upcoming White House visit.
The 15% tariff, lower than the 25% threat Trump previously issued, parallels levies from US trade agreements with Japan and the European Union. Trump’s move aims to stimulate the US manufacturing sector while strengthening South Korean companies’ competitiveness in the American market.
South Korean Finance Minister Koo Yun-cheol credited the newly agreed deal to the “Make American Shipbuilding Great Again” (MASGA) proposal, an apparent reference to Trump’s “Make America Great Again” (MAGA) mantra. MASGA’s focus on revitalizing the US shipbuilding industry was instrumental in reaching this agreement. Koo believes South Korea’s world-class shipbuilding capabilities will contribute to this rebirth. Following the announcement, shares of South Korean shipbuilder Hanwha Ocean soared by over 15% in Thursday trading.
South Korean President Lee Jae Myung described the trade deal as “the first major trade challenge” since he assumed office. He asserted that the agreement has “eliminated uncertainty surrounding export conditions” and ensured US tariffs on South Korean exports are competitive with those levied on other major trade partners.
This trade deal marks an early victory for President Lee, who took office in June following a snap election after his predecessor’s impeachment. His administration is eager to bolster South Korea’s export-driven economy, which is the fourth-largest in Asia. Trump, who has been implementing sweeping tariff changes since his return to power in January, has also placed 25% tariffs on Indian imports and 50% on Brazilian goods, citing a “witch hunt” against his ally, former Brazilian President Jair Bolsonaro.
This trade development underscores the dynamic nature of global economic relations, with the US and South Korea seeking to strengthen their trade ties while addressing domestic industrial concerns.
