(GYEONGIU, South Korea) – South Korea announced on Wednesday that it has reached an agreement on details of the trade deal with the U.S., following a bilateral meeting between President Donald Trump and President Lee Jae Myung, as well as months of negotiations.
President Lee’s chief of staff said the tariffs the U.S. imposes on automobile exports will be lowered to 15% from 25%. The framework deal from July lowered the reciprocal rate to 15% and that will be maintained.
Back in July, South Korea pledged to invest $350 billion into the U.S. Lee’s chief of staff said a $200 billion investment will be made in installments of up to $20 billion cash payments each year. Another $150 billion will be invested in the U.S. shipbuilding industry.
This now puts the auto tariffs South Korea will pay in line with those on Japan.
The White House has not responded to request for comment about the tariffs, but released a fact-sheet with more details of the trade deal.
It includes a commitment from Korean Air to purchase 103 new Boeing aircraft for $36.2 billion, a move that is expected to support up to 135,000 jobs in the U.S. The Republican of Korea Air Force will invest $2.3 billion to develop its aircraft with an American technology company.
Plus, the White House said it has secured key investments that solidify the United States as a global energy leader, including South Korean purchases of American liquid natural gas and a $3 billion investment in U.S. power-grid infrastructure.
Earlier on Wednesday, the South Korean president greeted Trump with flattery and gifts, including a replica of the ancient gold crown from the Silla dynasty. Their meeting was held in Gyeongju, South Korea, which was the capital of the ancient Silla Kingdom.
Trump was also awarded with the Grand Order of Mugunghwa, South Korea’s highest honor. Trump is the first U.S. president to receive the honor.
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