NewKerala.com

US-South Korea Trade Breakthrough: How Trump-Lee Deal Resolves Auto Tariff Battle

South Korea and the United States have finalized a major trade agreement during the APEC summit in Gyeongju. The deal resolves longstanding auto tariff disputes by lowering rates from 25% to 15%, matching Japan's competitive position. A massive $350 billion investment package was restructured to protect South Korea's foreign exchange market with annual caps. President Trump received South Korea's highest civilian award during the historic meeting that strengthens economic ties between the two nations.

Key Points: South Korea US Trade Deal Agreement Reached on Auto Tariffs

  • Auto tariffs reduced from 25% to 15% matching Japan's competitive rate
  • $350B investment split into $200B cash and $150B shipbuilding cooperation
  • Yearly investment capped at $20B to protect South Korea's forex market
  • Semiconductor tariffs set at rates competitive with Taiwan's market position
2 min read

South Korea, US reach agreement on trade deal

Historic trade agreement lowers auto tariffs to 15%, resolves $350B investment concerns, and strengthens US-South Korea economic partnership at APEC summit.

"Together we're solving the challenges that no one before has ever been able to solve - Donald Trump"

Gyeongju, October 29

South Korea has reached an agreement on the details of a trade deal with the US on Wednesday, presidential chief of staff for policy Kim Yong-beom told reporters in Gyeongju, following the bilateral meeting between President Lee Jae Myung and US President Donald Trump, CNN reported.

The agreement on the big frame of the trade deal in July had brought the reciprocal tariff down to 15 per cent, but South Korea's automobile export was still subject to 25 per cent tariff rate and details on the agreement were not concluded until Trump met with Lee on the sideline of APEC.

Among the USD 350 billion investments Trump demanded upfront, Kim said that USD 200 billion will be done in cash and USD 150 billion through shipbuilding cooperation, which will be led by South Korean companies, CNN reported.

The USD 200 billion investment will be done over many years, with yearly investment limited to USD 20 billion depending on the business progress, Kim said.

He added that such limit would make it manageable for South Korean foreign-exchange market, which was the biggest concern for Seoul when asked to originally pay USD 350 billion in cash.

Wednesday's agreement will lower automobile tariffs to 15 per cent, same rate as competitor Japan, and semiconductor tariff rate that is not unfavorable compared to rival Taiwan, Kim said.

https://x.com/WhiteHouse/status/1983472746752536867

https://x.com/WhiteHouse/status/1983476505217794430

At the 2025 APEC CEO Summit South Korea, Trump said, "Together we're solving the challenges that no one before has ever been able to solve... From San Francisco to Seoul... we're strengthening old friendships, forging new bonds... and creating a dramatically better world for our children and generations to come."

https://x.com/WhiteHouse/status/1983537354787725746

https://x.com/WhiteHouse/status/1983545166351737041

Trump was honored by South Korea with a gold crown and the Grand Order of Mugunghwa--the nation's highest civilian award and the first time it has been given to an American president.

- ANI

Share this article:

Reader Comments

R
Rohit P
Automobile tariffs reduced from 25% to 15% - that's significant! Makes me wonder when India will get similar favorable terms in our trade agreements. Our auto industry could benefit from such partnerships.
A
Arjun K
The shipbuilding cooperation part is smart - South Korea gets to lead while sharing expertise. India should take notes on how to structure such win-win deals. Our Make in India could learn from this approach.
S
Sarah B
While the deal seems beneficial, I'm concerned about the pressure on smaller economies. The $350 billion demand initially seemed excessive. Glad they negotiated it down to manageable levels. Smaller nations need fair treatment.
V
Vikram M
Semiconductor tariffs being competitive with Taiwan is crucial for global tech balance. As India pushes for semiconductor manufacturing, we need to watch these international tariff structures carefully. 🚀
K
Karthik V
The gold crown and highest civilian award for Trump shows how much South Korea values this partnership. Diplomatic gestures matter in international relations. India should continue strengthening such cultural diplomacy in our trade deals.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50