U.S. President Donald Trump on Wednesday unveiled what he described as a “full and complete trade deal” between the United States and South Korea, announcing a new 15 per cent tariff on Korean imports — significantly lower than the 25 per cent rate he had previously threatened.
Posting on his Truth Social platform, Trump revealed that under the new agreement, South Korea will invest $350 billion in the U.S., including $100 billion worth of liquefied natural gas and other energy purchases. He added that an additional “large sum” would be announced in two weeks during a bilateral meeting at the White House with newly elected South Korean President Lee Jae Myung.
“I congratulate President Lee on his electoral success,” Trump wrote, hinting at deeper economic ties to come.
South Korean Finance Minister Koo Yun-cheol, speaking at a joint press conference in Washington, emphasized Seoul’s role in supporting the revival of the U.S. shipbuilding industry through its “world-class” companies.
He credited the Make American Shipbuilding Great Again (MASGA) initiative as a key factor in securing the deal.
“Our companies’ advanced ship design and construction capabilities are expected to help rebuild U.S. industrial strength,” said Koo.
Following the announcement, shares of South Korean shipbuilder Hanwha Ocean, which owns a shipyard in Philadelphia, surged by over 15 per cent in Thursday trading.
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In a Facebook statement, President Lee hailed the agreement as a major diplomatic and economic milestone.
“This was the first major trade challenge for our administration,” Lee stated. “We’ve eliminated export uncertainties and ensured fair tariff treatment for Korean products in the U.S. market.”
Lee came to power in June after a snap presidential election triggered by the impeachment of Yoon Suk Yeol, who was removed following widespread backlash over his martial law declaration last December.
Since returning to office in January, Trump has introduced a broad 10 per cent global tariff, with steeper levies on steel, aluminium, and automobiles. These are set to rise further from August 1. On Wednesday, he also imposed 25 per cent tariffs on India and 50 per cent on Brazil, citing retaliatory motives linked to the legal troubles of former Brazilian President Jair Bolsonaro, a close Trump ally.
Analysts view the South Korea deal as a key early victory for President Lee and a strategic pivot for the U.S. amid global economic tensions.