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Korea, U.S. agree on 15% tariffs, including on auto: Presidential office

Published: 31 Jul. 2025, 08:53 Updated: 31 Jul. 2025, 09:06

SARAH KIM
[email protected]

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. [NEWS1]

The presidential office said Thursday that Seoul and Washington agreed on a trade deal that sets tariffs on exports to the United States at 15 percent, including for the Korean auto sector, on the eve of a deadline to reach an agreement.

"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 Yong-beom, presidential chief of staff for policy, said at a press briefing at the Yongsan presidential office. "Furthermore, tariffs on automobiles, a key export item, have also been lowered to 15 percent."

Kim said that through this deal, Korea didn't have to expand its rice and beef imports from the United States, a sensitive issue for the country.

"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."

He also noted that Korea was "not treated unfavorably compared to other countries" regarding tariffs on semiconductors and pharmaceuticals.

Hours earlier, Trump announced on social media platform Truth Social that the United States had reached a trade deal with Korea, setting blanket tariffs at 15 percent. 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 or other energy products.

Trump also announced plans to hold a bilateral summit with President Lee Jae Myung at the White House in two weeks' time.

Regarding the $350 billion fund, Kim said during the briefing that this will encompass a $150 billion Korea-U.S. shipbuilding cooperation fund encompassing the entire shipbuilding ecosystem, including shipbuilding, maintenance, repair and overhaul (MRO) and equipment.

Korea had proposed the "Make American Shipbuilding Great Again" initiative in response to the Trump administration’s drive to rebuild U.S. shipbuilding industry.

Kim said that in addition, a $200 billion investment fund will be created for areas where Korean companies have a competitive edge, such as semiconductors, nuclear power plants, rechargeable batteries and biotechnology.

He noted there is a "high possibility that Korean companies will participate as strategic partners, and this will be a good opportunity for our companies interested in advancing into the U.S. market."

President Lee also wrote in a Facebook statement that the fund 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 noted that through the trade deal, Korea has “cleared a major hurdle," eliminating export uncertainties and creating conditions for Korean companies to “compete on equal or superior terms with major countries."

BY SARAH KIM [[email protected]]