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'Very successful': White House celebrates 'historic' trade agreement with Korea

Published: 01 Aug. 2025, 12:46

President Donald Trump, center, and Korea’s trade delegation pose for a group photo at the White House in Washington, on July 30 after reaching a tariff agreement. [WHITE HOUSE]

The White House on Thursday celebrated a sweeping new trade agreement between the United States and Korea, calling it “historic” and touting massive investments and tariff changes set to take effect immediately.

In a post on X, the White House shared a photo of President Donald Trump posing with the Korean trade delegation, all smiling and giving thumbs-up gestures. Standing with Trump were Korea’s Deputy Prime Minister and Finance Minister Koo Yun-cheol, Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo. Also pictured were U.S. officials including Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer.

The 40-minute meeting took place Wednesday in the Cabinet Room of the White House's West Wing.

According to the White House, Korea agreed to invest $350 billion in the United States, buy $100 billion in American energy and adopt a “completely open trade” policy — eliminating tariffs on U.S. goods.

White House press secretary Karoline Leavitt holds up photos of the planned new White House ballroom during a press briefing at the White House in Washington, July 31. [AP/YONHAP]

U.S. government gets '90 percent'

White House spokesperson Karoline Leavitt confirmed during a Thursday briefing that President Trump had met with the Korean delegation on Wednesday and reached a deal, calling it a “very successful meeting.”

Leavitt said “the centerpiece of this deal is that South Korea has agreed to invest $350 billion at the president's direction to revitalize American industry,” adding that “90 percent of those profits will go to the United States government to help pay down our debt and for other matters at the president's choosing.”

Leavitt reaffirmed Lutnick’s previous comments that 90 percent of the returns from Korea’s investment would go to the United States, and specified that it would be directed toward repaying national debt.

When asked about the timeline for a summit between President Trump and President Lee Jae Myung, which Trump had said could occur within two weeks, Leavitt answered “I'll get you something on that. I don't have it at my fingertips.”

U.S. Treasury Secretary Scott Bessent speaks to reporters at the U.S. Capitol in Washington, June 27. [REUTERS/YONHAP]

Korea made 'a very good offer’

Bessent offered behind-the-scenes details in an interview with CNBC, revealing that Korea “presented a very good offer” during their meeting at the White House. "President Trump moved the offer up a bit, and we reached a very good agreement where they will have 15% tariffs.”

“They will buy a substantial amount of U.S. energy,” said Bessent. “They will make a substantial investment into the U.S., both from their sovereign resources and via private companies”

Industry Minister Kim previously said the negotiations saw back-and-forth changes in Korea’s proposed investment figure before both sides settled on $350 billion through compromise and persuasion.

The final figure reportedly emerged after intense negotiation with Lutnick, followed by a last-minute adjustment from Trump. The agreement includes large-scale investments in the United States through Korean sovereign funds and private capital, as well as the elimination of several Korean nontariff barriers, according to Kim.

“They told us, ‘We love American products,’” he said, noting the expected rise in U.S. energy exports and improved conditions for American farmers and exporters.

Trade Minister Yeo also revealed that Washington had strongly pushed for greater agricultural market access during the negotiations.

“Roughly 90 percent of farmers are Trump supporters,” he said. “Given the precedents set by Japan and the EU, no agreement has ever been reached without additional agricultural concessions. The pressure was extremely strong throughout.”

Finance Minister Koo Yun-cheol, left, and U.S. Commerce Secretary Howard Lutnick discuss bilateral trade issues in Washington on July 29. [MINISTRY OF ECONOMY AND FINANCE]

Reciprocal tariffs to take effect Aug. 1

The White House confirmed that reciprocal tariffs would go into effect as scheduled on Aug. 1. Leavitt said that Korea, Japan and the European Union would be subject to 15 percent tariffs under the new trade agreements.

Among the United States’ 18 major trading partners, two-thirds have signed new trade agreements, according to Leavitt. “The remaining countries that have not reached deals or who received tariff letters will be contacted by midnight tonight,” she said. “Reciprocal tariffs will take effect starting Aug. 1.”

“Of our 18 major trading partners, two-thirds of those trading partners have a deal,” said Leavitt. “We've sent out 17 letters to countries around the world, and the rest of those countries that either do not have a deal or have a letter, they will be hearing from this administration by the midnight deadline tonight.

“So yes, tomorrow, Aug. 1, the reciprocal rates will be going into effect,” Leavitt said.

Leavitt said to “never count out the president,” and added, “You've seen him do it before. He cut three deals in one day.”

“I do know foreign leaders are ringing his phone realizing this deadline is a real thing for them tomorrow and they're bringing offers to the table.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM HYOUNG-GU [[email protected]]