S Korea announces lowering of tariffs as part of new US trade deal

The US and South Korea have reached a broad commerce deal, each nations have stated following talks between their leaders.

South Korea’s presidential aide, Kim Yong-beom, stated the 2 sides will scale back reciprocal tariffs from 25% to fifteen%, as was agreed earlier this yr.

South Korea may also make investments $350bn within the US, together with $200bn in money funding and $150bn in shipbuilding, Kim stated.

US President Donald Trump, who’s presently on a week-long journey in Asia, stated the deal was “just about finalised” at a dinner following the discussions, which lasted nearly two hours. He didn’t give additional particulars.

“We had an incredible assembly as we speak with South Korea”, Trump stated of his discussions with South Korean President Lee Jae Myung, including that “lots was decided”.

“We mentioned another issues to do with nationwide safety et cetera. And I feel we got here to a conclusion on a whole lot of crucial gadgets.”

Each side had performed down the prospect of a breakthrough forward of Wednesday’s talks – disappointing many in South Korea’s electronics, chip and auto industries, which had been hoping for some readability amidst the tariff chaos.

Trump had slapped a tariff charge on Seoul of 25% earlier this yr – which Lee managed to barter down to fifteen%, after Seoul stated it will make investments $350bn within the US and purchase $100bn price of liquified pure gasoline.

However the White Home later enhance its calls for as a part of the commerce talks, with Trump pushing for money investments within the US.

Each nations have traditionally been key allies – however tensions spiked after lots of of South Koreans have been detained in an immigration raid within the US final month.

Trump will subsequent meet his Chinese language counterpart Xi Jinping in on Thursday on the sidelines of a summit of the Asia-Pacific Financial Cooperation (Apec) which is happening in Gyeongju.

China’s international ministry has confirmed the assembly, which can happen within the metropolis of Busan on Thursday, a brief flight away from Gyeongju.

The US president stated on Wednesday that he was “trying ahead” to the assembly.

“We have been speaking lots over the past month and I feel we’ll have one thing that is gonna be very, very passable to China and to us.”

This would be the two leaders’ first nose to nose assembly since Trump assumed workplace in 2025 and imposed tariffs on each nation on the earth.

Addressing a bunch of CEOs in Gyeongju on Wednesday, Trump stated that he believes the US is “going to have a deal” with China and will probably be “a superb deal for each”.

He additionally praised the Apec nations for making the worldwide buying and selling system, which he stated had been “damaged” and “in pressing want of reform”, fairer.

“Financial safety is nationwide safety,” Trump says. “That is for South Korea, that is for any nation.”

Forward of Wednesday’s talks with President Lee, Trump had been greeted by an honour guard and presents that included a golden crown.

“I might prefer to put on it proper now,” Trump had stated of the crown.

He additionally acquired the Grand Order of Mugunghwa, South Korea’s highest ornament.

He is the primary US president to obtain the award, which was given “in recognition of his contribution to peace on the Korean Peninsula”, the South Korean presidential workplace stated.

Each leaders took half in a working lunch – which was adopted by a non-public assembly within the afternoon.

Trump’s arrival in South Korea had been preceded by North Korea test-firing surface-to-air cruise missiles.

The US president had expressed curiosity in assembly North Korean chief Kim Jong Un however famous on Wednesday that his group had been unable to rearrange this throughout his journey.

Noting the long-standing tensions between North and South Korea, Trump stated “we are going to see what we are able to do to get that each one straightened out”.

And outdoors the summit venue the place each leaders have been assembly, a small anti-Trump group of protesters gathered on Wednesday afternoon, with some shouting anti-Trump slogans. Police may very well be seen forcibly dispersing the gang and arresting some folks.

Nonetheless, lots of extra attended a pro-Trump rally – together with those that shouted anti-Chinese language rhetoric – that additionally passed off near the summit venue.

Anti-Chinese language sentiment in South Korea has additionally grown steadily lately. Chinese language interference turned a standard trope in conspiracy theories about former South Korean president Yoon Suk Yeol.

Throughout his journey to Japan on Tuesday, the US president signed an agreement on rare earth minerals with Tokyo, in addition to a doc heralding a brand new “golden age” of US-Japan relations. This reiterated the dedication of the 2 nations to implement offers struck earlier, together with the 15% tariff deal negotiated earlier this yr.

Previous to that, he attended a gathering of South East Asian leaders, referred to as Asean, in Malaysia. There he presided over a “peace deal” between Thailand and Cambodia, whose longstanding border dispute erupted into open battle in July.

With extra reporting by Laura Bicker, China Correspondent and Suranjana Tewari, Asia Enterprise Correspondent