Agreement Signed Between South Korea and the USA on Tariff Reductions

• The agreement reduces tariffs on South Korean goods by 15%.
• South Korea is investing $350 billion in the USA.
• The agreement maintains the competitiveness of South Korea in the market.

The President of South Korea Lee Jae-myung announced the successful signing of a trade agreement with the USA, under which import tariffs on South Korean goods will be set at 15%. The agreement was announced by Donald Trump on July 31, 2025, ahead of the introduction of new high tariffs on other countries.

Along with the agreement, South Korean automobiles will fall under a 15% tariff, which is a positive step for the automotive industry of the country, which previously faced a 25% tariff. The agreement also anticipates South Korean investments in projects in the USA totaling $350 billion and the purchase of energy products worth $100 billion.

Trump noted that South Korea also rejected requests regarding the expansion of access to its markets for American products, including rice and soybeans, which provoked an outcry among Korean farmers. Meanwhile, the agreement does not reduce existing tariffs on steel, aluminum, and copper.

Lee emphasized that the agreement ensures stability and secures the competitiveness of South Korea in the USA market. He stressed the importance of achieving mutually beneficial results for both sides.

South Korea, which is one of the largest exporters in the world, has the opportunity to maintain its competitiveness in comparison with Japan, which also signed an agreement with the USA regarding a 15% tariff.

Analysts consider this agreement positive, as it reduces risks associated with new tariffs and helps support the economy of South Korea, which significantly depends on exports.

Tags: USA/Economy