President Donald Trump announced Wednesday night that the United States has reached a “full and complete trade deal” with South Korea—one that significantly lowers tariffs and brings billions of dollars in energy and infrastructure investment to the U.S.
The announcement followed high-level meetings at the White House earlier in the day, where President Trump and top South Korean officials discussed terms of a new trade framework aimed at deepening economic ties while addressing the U.S. trade deficit.
“South Korea will give the United States $350 billion for investments owned and controlled by the United States, and selected by myself, as President,” Trump said in a post on Truth Social. “Additionally, South Korea will purchase $100 billion worth of LNG or other energy products, and will make further investments for their own purposes.”
Key Points of the U.S.-South Korea Trade Deal:
Tariff Reduction: U.S. tariffs on South Korean goods will be cut from 25% to 15%.
American Exports Favored: South Korea will fully open its markets to U.S. goods—including cars, trucks, and agricultural products—with no tariffs on American exports.
Energy Purchase Agreement: South Korea commits to buying $100 billion in American liquefied natural gas and other energy products.
Strategic Investment Plan: South Korea to invest $350 billion in U.S.-controlled projects, selected by the president.
Upcoming Summit: South Korean President Lee Jae Myung is expected to visit the White House within the next two weeks to sign the agreement in person.
Trump framed the deal as a victory for American workers and a major step toward reducing the trade deficit—one of the administration’s long-standing economic priorities.
“All of this will help reduce our trade deficit in a very major way,” Trump wrote. “A full report will be released at the appropriate time. Thank you for your attention to this matter. MAKE AMERICA GREAT AGAIN!”
The announcement mirrors a separate trade deal reached earlier this week between the U.S. and the European Union, which also reduced tariffs to 15% in exchange for European investment in American energy and infrastructure.
Political and Economic Implications
The South Korea deal is being seen as a key foreign policy and economic win for President Trump as he enters the second half of his current term. While the full details and legal framework of the investment mechanism remain to be disclosed, the White House says the plan is designed to give the U.S. government oversight and control over how the funds are allocated.
Supporters of the president hailed the agreement as a demonstration of Trump’s deal-making abilities and a pivot toward stronger trade partnerships that prioritize U.S. industry. Critics, however, are calling for more transparency, particularly regarding how the $350 billion in investment will be managed and what oversight structures will be in place.
No official statement has yet been released by the South Korean government, though sources familiar with the negotiations say Seoul views the deal as a step forward in securing energy partnerships and maintaining a favorable trade relationship with Washington amid rising global economic uncertainty.
What's Next?
President Trump is expected to meet with other international trade partners in the coming weeks as part of a broader push to renegotiate tariff structures and secure additional investment in U.S. manufacturing and energy production.
