South Korea and US Agree on Trade Deal with Reduced Tariffs

Tue Nov 11 2025 00:37:59 GMT+0200 (Eastern European Standard Time)

In a significant move towards enhancing trade relations, South Korea and the United States have agreed to lower tariffs as part of a comprehensive trade deal, facilitating economic cooperation.

After high-level discussions, South Korea and the US have finalized a trade agreement that includes a reduction in tariffs from 25% to 15%. Additionally, South Korea will invest $350 billion in the US economy, including substantial investments in shipbuilding and liquefied natural gas purchases. The announcement follows a meeting between US President Trump and South Korean President Lee Jae Myung, aiming to strengthen economic ties amid ongoing tensions with North Korea and trade complexities with China.

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 that the two sides will reduce reciprocal tariffs from 25% to 15%, as was agreed earlier this year.

Moreover, South Korea will invest $350 billion in the US, which includes a $200 billion cash investment and $150 billion towards shipbuilding. US President Donald Trump remarked at a dinner following the discussions, We had a tremendous meeting today with South Korea, indicating that the deal is pretty much finalized. He added, a lot was determined during the nearly two-hour talks.

Despite previous uncertainty concerning the trade talks, both sides managed to negotiate the reduced tariff rate after substantial negotiations. Trump had initially imposed a 25% tariff, which President Lee managed to negotiate down by agreeing to invest heavily in the US economy and commit to buying $100 billion worth of liquefied natural gas.

Relations between the two nations have historically been strong, yet recent tensions arose following immigration enforcement in the US that affected South Korean nationals, igniting public protests.

This development unfolds as President Trump prepares for a meeting with Chinese President Xi Jinping at an upcoming summit, stressing the importance of economic security as a national priority. During his stay in South Korea, Trump was honored with high decorations, including the Grand Order of Mugunghwa, reflecting the deep-rooted partnership between the two countries.