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South Korea, US reach trade deal at Trump-Lee summit from tariffs to investment

PressNewsAgency
By PressNewsAgency

South Korea and the United States reached a comprehensive trade deal on Wednesday, ranging from tariffs and investment to shipbuilding, at the summit in Gyeongju between President Lee Jae-myung and his American counterpart, Donald Trump.

“We reached a deal. We did a lot of different things. Great session,” Trump said.

The two countries agreed to maintain tariffs at 15 per cent following a preliminary deal reached earlier this year, Chief Presidential Secretary for Policy Kim Yong-beom told reporters.

They agreed on “cutting tariffs on automobiles and auto parts to 15 per cent”, down from 25 per cent, Kim said, adding that “South Korea’s financial investment package for the United States, worth US$350 billion, consists of US$200 billion in cash investment and US$150 billion in shipbuilding cooperation”.

Kim said the investments would be “made in accordance with progress in projects and within an annual limit of US$20 billion, minimising any impact on the market”.

The US$20 billion would be mostly raised through interest payments and dividends on the country’s foreign exchange reserves to avoid affecting the capital market, he added.

South Korean President Lee Jae-myung (centre right) gives a welcome address next to US President Donald Trump during a special dinner held for state leaders at the Hilton Hotel in the southeastern city of Gyeongju, South Korea, on Wednesday. Photo: EPA/Yonhap

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