Former President Donald Trump boasted a new pact with South Korea. As part of the current deal, the Trump administration slapped a punitive 15% tariff on imports from the Asian nation. On Wednesday, unsuspecting eyes caught the news on the Truth Social platform. It came literally the day before the August 1st deadline, telling countries to move quickly and get their deals done or they will be subject to increased tariffs. The deal strengthens American access to South Korean markets. Simultaneously, it places a huge tariff on South Korean products.
Under the new agreement, South Korea will accept a variety of American products, including cars, trucks, and agricultural goods, without imposing any import duties. This complex but important deal is sure to provide a profound advantage to American manufacturers. Moreover, it will save U.S. jobs — a core theme of Trump’s trade policy since he re-took office this past January.
Trump has imposed a growing series of tariffs on goods from Canada, China, Mexico, and several other countries. He has gone on to threaten to raise future tariffs even higher. This agreement’s importance is underscored by the 25% duty South Korea would have paid without this deal. South Korean President Lee Jae Myung asserted that the agreement puts South Korea on equal footing with other countries. He went so far as to argue that it might leave the country better off.
In addition to the tariff agreement, Trump revealed that South Korea would invest $350 billion in the U.S. for projects selected by his administration. And South Korea has agreed to purchase $100 billion of America’s liquefied natural gas and other energy products. This decision is a welcome advance in the deepening bilateral energy relationship.
“I am pleased to announce that the United States of America has agreed to a Full and Complete Trade Deal with the Republic of Korea,” – President Donald Trump.
Lee Jae Myung is due to visit the White House in the next fortnight. He has a follow-up meeting planned with Trump to drill down further into the specifics of the agreement.
This broad patchwork of a trade deal has received a whole lot of applause. Critics say the administration has lost sight of the big picture with Trump’s chaotic global trade agenda. They contend that these types of tariffs will only serve to raise costs for U.S. consumers, disrupting competition within many different markets.
Make no mistake — the world is watching. With Trump’s aggressive push for tariffs and new trade negotiations the future of international trade relations is tenuous at best.