Trump Sets South Korean Import Tariff 15 Percent Down From Threat 25 Percent

JAKARTA - President Donald Trump said the United States (US) would charge 15% of imports from South Korea, down from a 25% threat, as part of a deal that eased tensions with top 10 trading partners and Asian main allies.

South Korea also agreed to invest $350 billion in the United States in projects Trump selected and to buy $100 billion worth of energy products.

The deal, which was announced after Trump met with Korean officials at the White House, comes amid heavy trade policy announcements.

Many countries rushed to reach an agreement ahead of August 1, when Trump had promised to impose a higher tariff.

"I am proud to announce that the United States has approved a Full and Complete Trade Agreement with the Republic of Korea," Trump wrote on Truth Social.

This negotiations is the initial test for South Korean President Lee Jae Myung, who took office in June after an impromptu election.

He said the deal removed uncertainty and set the US tariff lower or equivalent to the major competitor's tariff.

"We have passed a major hurdle," Lee said in a Facebook post. Trump said Lee would visit the White House "in the next two weeks" for his first meeting with the US president.

South Korea will accept American products, including automotive and agricultural products, to its market and not impose any import duties, Trump continued.

South Korean top officials say the country's rice and beef markets will not be opened further, and discussions over US demands regarding food regulations continue.

Seoul appears to have maintained its non-tariff barriers while maintaining its rates on par with Japan and the European Union, said Citi economist Kim Jin-wook.

"Although the main figures look like a big win to the US, the details appear to be in South Korea's favor," he said.