by supplychainreport
The United States will implement a 15% tariff on imports from South Korea as part of a newly finalized trade agreement between the two nations, which aims to enhance bilateral investment and strengthen long-term economic ties.
The announcement was made following a meeting between U.S. and South Korean officials at the White House, ahead of an August 1 deadline set for adjustments to U.S. trade policies with multiple global partners. Under the new agreement, the previously proposed 25% tariff on South Korean goods — including semiconductors, automobiles, and steel — will be reduced to 15%, aligning the rate with those applicable to other U.S. trading partners such as Japan and the European Union.
South Korean President Lee Jae Myung welcomed the agreement, stating that it ensures South Korea remains competitive by maintaining favorable export conditions. “The government has eliminated uncertainty surrounding export conditions and ensured that U.S. tariffs on our exports are either lower than or equal to those imposed on our major trade competitors,” Lee said.
In addition to tariff revisions, the agreement includes plans to establish a joint $350 billion investment fund, with $150 billion earmarked for shipbuilding cooperation. President Lee described the deal as a “major trade challenge” for his administration, which took office in June, and emphasized that it marks a significant milestone in enhancing economic cooperation.
Under the deal, South Korea also agreed to remove import duties on a range of U.S. products, including automobiles, trucks, and agricultural goods. Meanwhile, the U.S. confirmed that tariffs on key South Korean exports such as computer chips and pharmaceuticals would not exceed those levied on competing nations. The agreement maintains protections on South Korea’s rice and beef markets.
South Korean ministers Koo Yun-cheol (finance), Kim Jung-kwan (industry), and Yeo Han-koo (trade) were in Washington for the negotiations and played a central role in the finalization of the agreement.
The announcement follows a recent uptick in investment activity. Samsung Electronics signed a $16.5 billion chip deal with Tesla, while LG Energy Solution committed to a $4.3 billion battery supply agreement for Tesla’s energy storage systems.
In contrast, the U.S. has implemented higher tariff rates for other countries. Imports from India now face a 25% tariff, while goods from Brazil are subject to a 50% rate.
President Lee is expected to visit Washington within the next two weeks to further discuss bilateral cooperation.
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