U.S. and South Korea reach $350 billion trade agreement
President Donald Trump announced that a trade deal with South Korea is nearly finalized.
According to Trump, the agreement will reduce uncertainty and strengthen Seoul’s role as one of Washington’s leading economic partners.
The statement came during Trump’s Asian tour at a dinner with President Lee Jae-myung in Gyeongju. The deal includes cutting tariffs on South Korean goods from 25% to 15%, bringing them in line with rates applied to Japanese exporters. In return, Seoul will invest $350 billion in the U.S. economy over five years.
Trump during dinner with President Lee Jae-myung in Gyeongju. Source: nypost.com
Trump called the agreement a major step toward revitalizing American manufacturing, highlighting the participation of South Korean corporations Samsung and SK Hynix, which plan to build two data centers as part of the U.S. Stargate project - a private initiative to expand AI infrastructure.
Despite the positive outlook, South Korean officials said the sides remain divided over how the investments will be structured. Seoul is reportedly seeking a greater share of loans and government-backed guarantees to limit direct spending.
Following the announcement, the South Korean won rose 0.54% against the dollar, and shares of major exporters gained between 3% and 5%. The deal was viewed as a strong signal for regional markets amid rising U.S.-China trade tensions.
If fully implemented, it would mark the first major trade pact of Trump’s second term, aimed at rebalancing U.S. tariff policy after sharp increases on Chinese imports earlier in October.
