Trump Secures $350 Billion Trade Deal With South Korea

After meetings in Japan that culminated in $490 billion in investment commitments, President Donald Trump finalized a $350 billion trade deal in South Korea. 

“We made our deal, pretty much finalized it,” Trump said at a dinner with South Korean President Lee Jae Myung and other regional leaders.

According to Reuters, the agreement outlines a $350 billion South Korean investment in the U.S. in exchange for reduced import duties on Korean goods. Tariffs on Korean autos and parts will drop from 25% to 15%, matching rates for Japanese competitors.

Under the deal, $200 billion will be invested over several years, capped at $20 billion annually, while $150 billion will fund U.S. shipbuilding. 

CNBC adds that South Korean officials said both parties agreed to divide profits evenly even before the initial investments are recovered, and to focus solely on commercially viable ventures. U.S. Commerce Secretary Howard Lutnick will lead an investment committee responsible for evaluating potential projects.

The trade agreement now requires approval from South Korea’s parliament.

President Myung’s party, the Democratic Party of Korea, holds a majority in their unicameral legislature, with 166 of 300 seats (55%).