President Trump has said that a trade deal between the U.S. and South Korea is “pretty much finalized” after the two sides reached an agreement on how to implement a $350 billion investment in the U.S.
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“We reached a deal,” Trump said after meeting with South Korean President Lee Jae Myung. “We did a lot of different things. Great session.”
What to Know About the U.S.-South Korea Trade Deal
As part of the deal, the U.S. will lower tariffs on South Korean auto imports to 15% from 25%. In return, South Korea will invest $200 billion in the U.S, limited to $20 billion per year. The two countries will split the return on investment until South Korea recoups its invested capital. The remaining $150 billion will be provided through a shipbuilding partnership.
Furthermore, the U.S. has pledged that South Korea’s tariff rate will not place it at a disadvantage in comparison to Taiwan.
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