Thu, 31 Jul 2025

Thu, 31 Jul 2025 Trump announces deal to impose 15% tariff on South Korea

The agreement comes just a day before a 1 August deadline for countries to strike deals with the US.
President Donald Trump announced that the US will impose a 15% tariff on imports from South Korea, calling it a "full and complete trade deal". The agreement was reached just before a deadline for countries to reach agreements with the US or face higher tariffs. South Korea had been facing a potential 25% levy if no deal was struck. As part of the deal, Seoul will invest $350 billion in the US over several years, including $150 billion in shipbuilding projects that will help bolster its own industry. The investment is seen as a key victory for South Korea, which has strict controls on imports and wanted to protect its farming industry from further opening up to US goods. In exchange for the investment, the US agreed not to raise tariffs on certain products, such as rice and beef. However, steel and aluminum imports will still be taxed at 50%, in line with a global rate set by President Trump. The agreement does not address South Korea's military alliance with the US or its defense costs, which are expected to be discussed during a summit between the two leaders in two weeks' time.
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