US President Donald Trump has announced that a trade deal has been reached with South Korea’s President Lee Jae-myung as part of the final leg of his whirlwind tour across Asia.
Trump told journalists on Wednesday, October 29, “We did. We did reach a deal” when asked if a deal had been reached, without giving further details.
“We made our deal, pretty much finalized it,” he added.
He also reiterated that he would have “something very satisfactory” with Chinese President Xi Jinping when they meet on Thursday, October 30.
Trump is expected to meet his Chinese counterpart on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit taking place in Gyeongju.
Trump Says U.S. Has Reached Trade Deal with South Korea Ahead of Meeting with Xi Jinping
Trump and Lee announced a deal in August this year under which Seoul would avoid the worst of the tariffs by committing to invest $350 billion in the United States.
Both countries have historically been close allies, but tensions spiked after hundreds of South Koreans were detained in an immigration raid in the U.S. last month.
Trump had imposed a 25% tariff on Seoul earlier this year, which President Lee negotiated down to 15% after Seoul agreed to invest $350 billion in the U.S. and purchase $100 billion worth of liquefied natural gas.
The 15% tariff rate will cover both cars and semiconductors — two of South Korea’s main exports to the U.S. However, steel and aluminum, other major earners for South Korea, will be taxed at 50%, in line with the global rate set by President Trump. Also Read:
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Seoul maintains strict controls on the amount of U.S. rice and the types of beef that can be imported to protect its farming industry. Farmers had planned protests if these restrictions were to be relaxed.
Of the $350 billion South Korea had pledged to invest in the U.S., $150 billion will go toward helping the U.S. build ships, including warships.
This move is central to South Korea’s strategy, as the country boasts one of the world’s largest shipbuilding industries — second only to China — at a time when U.S. shipbuilding and naval capacity are in decline.
Trump Strengthens U.S.-Japan Alliance with New Trade Agreements
Pressure on Seoul had been mounting after Japan, a key competitor in the automobile and manufacturing sectors, secured a 15% tariff rate with the U.S. in late July.
During his trip to Japan on Tuesday, October 28, Trump signed an agreement on rare earth minerals with Tokyo, as well as a document heralding a new “golden age” of U.S.-Japan relations.
The agreement reaffirmed both countries’ commitment to implement previously negotiated deals, including the 15% tariff arrangement.
Prior to that, Trump attended a gathering of Southeast Asian leaders, known as ASEAN, in Malaysia, where he presided over a “peace deal” between Thailand and Cambodia following their longstanding border dispute, which had erupted into open conflict in July.
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Ahead of Wednesday’s talks with President Lee, Trump was greeted by an honour guard and presented with gifts, including a golden crown.
“I’d like to wear it right now,” Trump said of the crown.
He also received the Grand Order of Mugunghwa, South Korea’s highest national decoration.
He is the first U.S. president to receive the award, which was given “in recognition of his contribution to peace on the Korean Peninsula,” according to the South Korean presidential office.
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