Trump Announces 15% Tariff on South Korean Goods

Former U.S. President Donald Trump on Wednesday revealed a new 15% tariff on imports from South Korea, describing it as part of a “full and complete trade deal” between both countries.

“South Korea will give to the United States $350 Billion Dollars for Investments,” Trump stated in a post on Truth Social, adding that the Asian nation would purchase $100 billion worth of liquefied natural gas or other energy products.

The newly announced tariff falls below the 25% rate Trump had previously threatened and is in line with those set under trade deals with Japan and the European Union. Trump also hinted at further investment from Seoul, saying, “This sum will be announced within the next two weeks when the President of South Korea, Lee Jae Myung, comes to the White House for a Bilateral Meeting,” and congratulated the South Korean leader on his “electoral success.”

South Korea’s Finance Minister, Koo Yun-cheol, attributed the agreement in part to Seoul’s commitment to supporting America’s shipbuilding industry. “I believe MASGA made the greatest contribution to reaching today’s agreement,” Koo told reporters in Washington, referencing the “Make American Shipbuilding Great Again” initiative.

“Our world-class shipbuilding companies, equipped with the highest level of ship design and construction capabilities, are expected to help revive the US shipbuilding industry,” he added. Shares in Hanwha Ocean, a South Korean shipbuilder with operations in Philadelphia, surged more than 15% in Thursday trading following the announcement.

The White House meeting between the two leaders will be their first since Lee Jae Myung took office in June, following the impeachment of former president Yoon Suk Yeol over a failed martial law declaration in December.

In a Facebook post, President Lee called the trade agreement “the first major trade challenge” since his administration began. “We have overcome a major hurdle,” he wrote. “Through this deal, the government has eliminated uncertainty surrounding export conditions and ensured that US tariffs on our exports are either lower than or equal to those imposed on our major trade competitors.”

Lee celebrated the deal as a crucial win for South Korea’s export-driven economy. “This agreement represents the convergence of US interests in revitalising its manufacturing sector and our determination to strengthen Korean companies’ competitiveness in the American market,” his statement added.

Since returning to office in January, Trump has introduced a sweeping 10% baseline tariff on imports from allies and rivals alike, with scheduled increases for dozens of countries starting August 1. In contrast to the 15% levy on South Korea, he also imposed a 25% tariff on India and a steep 50% tariff on imports from Brazil.

The rate on Brazil was partially framed as retaliation for legal proceedings against former Brazilian President Jair Bolsonaro, a Trump ally, whom the former U.S. president has repeatedly defended from what he calls a political “witch hunt.”