U.S.-South Korea Trade Pact: Boosting Investment, Easing Barriers
The U.S. and South Korea have agreed on a trade deal that imposes a 15% tariff on South Korean imports, involving a $350 billion investment in the U.S. The agreement eases auto tariffs and includes energy purchases. Some sectors like digital services and security issues were left out.
The United States and South Korea have sealed an important trade agreement that sets a 15% tariff on imports from South Korea, while ensuring major investments in the U.S. President Donald Trump announced the deal on Wednesday, highlighting South Korea's $350 billion commitment to American projects.
The agreement also lowers the U.S. tariff on South Korean automobiles from 25% to 15%, aligning it with the rates applied to Japan and the European Union. Both countries have pledged to continue discussions on safety regulations affecting auto imports, which the U.S. has identified as a non-tariff barrier in the past.
Additionally, South Korea will move forward with a substantial energy purchase from the U.S., valued at $100 billion. While key topics like digital services and foreign exchange issues were not addressed, further dialogues are planned to handle these sensitive subjects.
(With inputs from agencies.)
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