Under a high‑stakes negotiation concluded just ahead of his August 1 deadline, U.S. President Donald Trump has agreed to impose a 15 % tariff on South Korean imports—down from a previously threatened 25 %—in exchange for a major trade and investment commitment from Seoul, says Reuters.

South Korea has pledged to invest $350 billion in U.S.-based projects directed by the White House—$150 billion earmarked for shipbuilding and $200 billion for industries such as semiconductors, biodegradable technology, batteries, and nuclear energy.

Additionally, Seoul has committed to purchase $100 billion in U.S. energy products (LNG, LPG, crude oil, and some coal) over the next 3.5 years.

Importantly, Washington offered duty-free access for many U.S. exports to South Korea under this agreement. However, Seoul resisted further liberalization of its rice and beef markets, citing domestic political sensitivities and ongoing food safety regulations.

The 15 % tariff rate applies to key South Korean exports, including automobiles and auto parts, which previously faced 25 %. This positions Korean exporters on par with their competitors from Japan and the EU, Notably, steel, aluminum, and copper tariffs remain unchanged, meaning heavy industry remains exposed to existing punitive duties.

Industry and financial analysts viewed the deal as a relief that forestalled harsher tariff shocks. Morgan Stanley’s chief Korea economist stated it prevents worse outcomes and removes Korea-specific trade risks, prompting expectations of an upward revision in Bank of Korea growth forecasts.

Hyundai reaffirmed its U.S. strategy, highlighting a plan to expand investments to $41.5 billion, supporting over 100,000 American jobs, while Samsung’s CFO welcomed reduced uncertainty and called for clarity on implementation.

Yet critics warn the devil is in the details. Former trade officials urge scrutiny on how and where the $350 billion will be allocated, cautioning that ambiguous terms could favor South Korean firms more than the U.S. economy.