US–SOUTH KOREA TRADE DEAL FINALISED

NEWS

• The United States and South Korea have reached a long-awaited agreement on a new bilateral trade deal.
• The announcement came during US President Donald Trump’s visit to South Korea, coinciding with the APEC Summit in Gyeongju.

HIGHLIGHTS

Key Terms of the Agreement

• Reduced US Tariffs:
  • The US agreed to lower import tariffs on South Korean goods from 25% to 15%.
• Investment Commitments:
  • South Korea will make cash investments of up to $20 billion annually.
  • An additional $150 billion will be directed toward US shipbuilding projects.
  • Investments will be limited to “commercially reasonable”
• Currency Concerns:
  • Seoul had previously resisted Trump’s investment demand due to fears of currency destabilisation.

Diplomatic Highlights

• The announcement followed a ceremonial exchange in Gyeongju, where President Lee gifted Trump a replica of a Silla royal crown and a national honour medal.
• The meeting marked a symbolic strengthening of economic and diplomatic ties.