Korea, U.S. agree to 15% tariff in 11th-hour deal
Published: 31 Jul. 2025, 17:34
Updated: 01 Aug. 2025, 22:06
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- SARAH KIM
- [email protected]
Audio report: written by reporters, read by AI
![President Lee Jae Myung speaks on the trade deal with the United States in a meeting with senior presidential secretaries at the Yongsan presidential office in central Seoul on July 31. [JOINT PRESS CORPS]](https://koreaseafood.online/data/photo/2025/08/01/c9939439-7f3a-4376-adcf-c532456298ad.jpg)
President Lee Jae Myung speaks on the trade deal with the United States in a meeting with senior presidential secretaries at the Yongsan presidential office in central Seoul on July 31. [JOINT PRESS CORPS]
In an 11th-hour trade deal, Seoul and Washington agreed to set tariffs on Korean exports to the United States at 15 percent, lower than the expected 25 percent, the two countries announced Wednesday in the U.S. capital, overcoming a "major hurdle" that could've set back bilateral relations.
Korea, in turn, promised to invest $350 billion in the United States, though the actual amount and details are expected to become clearer when President Lee Jae Myung and U.S. President Donald Trump hold their first bilateral summit in Washington in around two weeks' time.
Under the agreement, Korea won't have to expand its rice and beef imports from the United States, a sensitive issue for the country, Kim Yong-beom, presidential chief of staff for policy, said in a press briefing at the Yongsan presidential office in Seoul Thursday. Likewise, auto tariffs were set at 15 percent, a higher rate than what Korean negotiators have pushed for.
"The 25 percent reciprocal tariff that the United States announced it would impose on Korea starting Aug. 1 will be reduced to 15 percent," Kim told reporters. "Furthermore, tariffs on automobiles, a key export item, have also been lowered to 15 percent."
He also noted that Korea was "not treated unfavorably compared to other countries" regarding tariffs on semiconductors and pharmaceuticals.
"It's true that during our discussions with the United States, there was a strong demand to open our agricultural and livestock market," Kim said. "However, considering food security and the sensitivity of agriculture, we agreed not to further open the domestic rice and beef markets."
![U.S. President Donald Trump, left, sits at a health technology event in the East Room at the White House in Washington on July 30. [REUTERS/YONHAP]](https://koreaseafood.online/data/photo/2025/08/01/08d7c643-1f3e-4c5b-94f9-d79cc7b530b4.jpg)
U.S. President Donald Trump, left, sits at a health technology event in the East Room at the White House in Washington on July 30. [REUTERS/YONHAP]
"We have agreed to a Tariff for South Korea of 15%," Trump wrote. "America will not be charged a Tariff."
He said, in turn, Korea will invest $350 billion in the United States, in areas "selected" by himself. He also said Korea agreed to purchase $100 billion of U.S. liquefied natural gas (LNG) or other energy products.
Trump also said the "sum will be announced within the next two weeks" in a planned bilateral summit with president at the White House, which will mark the two leaders' first in-person meeting after scheduled talks on the sidelines of the Group of 7 summit in Canada last month fell through.
Contrary to Seoul's announcement, Trump wrote that Korea will be "completely" open to trade with the United States" and "accept American products," including cars and agriculture.
Trump added that it was an "honor' to meet the Korean trade representatives at the White House "and talk about the Great Success of their Country!"
The announcement comes as Korean negotiators have been scrambling for weeks to reach an agreement before the deadline for "reciprocal tariff" rates to take place, with a trade delegation led by Finance Minister Koo Yun-cheol negotiating with U.S. Commerce Secretary Howard Lutnick earlier this week.
However, the exact details of Korea's investment in the United States are expected to be solidified in the coming weeks while Seoul signs in relief for reaching what could be considered a best-case outcome for now.
Kim noted there had been "heated exchanges between the two sides regarding the lifting of beef age restrictions and rice imports," but that Seoul made "no further concessions in these areas." He characterized Trump's assertions regarding agriculture as a possible "political statement."
Korea's agro-livestock industry has expressed concern regarding reports that the U.S. administration had asked Korea to lift its import ban on U.S. beef from cattle 30 months or older and expand its rice imports, which could threaten local farmers.
![Kim Yong-beom, presidential chief of staff for policy, gives a press briefing on a trade deal with the United States at the Yongsan presidential office in central Seoul on July 31. [YONHAP]](https://koreaseafood.online/data/photo/2025/08/01/bf36ca84-4603-4632-a3df-cd6f5f1baf00.jpg)
Kim Yong-beom, presidential chief of staff for policy, gives a press briefing on a trade deal with the United States at the Yongsan presidential office in central Seoul on July 31. [YONHAP]
Kim said that the Korean negotiators had done their best to study the trade deals between the United States and nations such as Japan to come up with favorable terms.
Lee also wrote in a Facebook statement Thursday soon after striking the deal that the investment will play a role in enabling the entry of Korean companies into the U.S. market in industries such as shipbuilding, semiconductors, rechargeable batteries, biotechnology and energy.
He wrote that through the trade deal, Korea had "cleared a major hurdle," eliminating export uncertainty and creating a scenario under which Korean companies to "compete on equal or superior terms with major countries."
In a meeting with senior presidential aides later Thursday, Lee, who has remained mostly mum on the details of the tariff negotiations, thanked related officials who "worked tirelessly" on the trade deal.
"The Korea-U.S. tariff negotiations have finally concluded," Lee said. "These negotiations are believed to have significantly resolved uncertainty in the trade environment. We anticipate that economic cooperation and the alliance between Korea and the U.S. will further strengthen."
He added, "While we have overcome a significant obstacle, the restructuring of the international trade order is expected to continue to accelerate. We must wisely navigate the rapidly changing external environment through flexible, pragmatic diplomacy focused on national interests."
BY SARAH KIM [[email protected]]
with the Korea JoongAng Daily
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