Trump Slashes Tariffs in Game-Changing South Korea Trade Deal

Trade tensions ease as the US and Seoul strike a revised agreement—just don't ask who's really footing the bill.

The Art of the (Tariff) Deal

After months of posturing, Washington dials back threats in a classic 'bark worse than bite' maneuver. Steel quotas get a tweak, auto imports breathe easier—and Wall Street yawns.

Fine Print Roulette

Behind the handshake photo ops? A 25% tariff stay of execution on pickups, with Korean automakers quietly expanding Alabama plants. Coincidence or calculated concession? (Spoiler: lobbyists earned their retainers this quarter.)

The Cynic's Take

Another 'historic' deal that mainly historicizes how quickly populist rhetoric folds to supply-chain realities—but hey, those 0.3% S&P futures bumps won't trade themselves.

Trade between South Korea and U.S ran deep last year

The United States bought $131.5 billion in South Korean products, while South Korea imported $65.5 billion in goods from the United States. Those figures made South Korea America’s sixth-largest trading partner, not counting regional blocs like the European Union. These numbers come from Census Bureau data.

South Korea managed to dodge a technical recession thanks to a better-than-expected performance in the second quarter of 2025. The Bank of Korea’s preliminary report showed the economy grew by 0.6% on a seasonally adjusted basis in the three months ending in June, up from a 0.2% drop in the first quarter. That result marked a turnaround for the world’s fourth-largest economy.

Economists surveyed by Reuters had predicted growth of 0.5%, meaning the result slightly surpassed their forecasts. On a year-over-year basis, gross domestic product ROSE by 0.5%, compared to no growth in the first quarter when consensus estimates had been 0.4%.

The turn in the second quarter kept South Korea from slipping into a second recession, which is defined as two straight quarters of negative growth. Earlier, the Bank of Korea had warned that softer global demand and rising geopolitical risks could weigh on its performance, but the latest figures added more color to the economic picture.

While growth remains modest, many analysts expected South Korea to keep moving forward as strong exports, steady consumer spending and targeted government investment provide support. Experts said a mix of healthy export numbers and steady domestic demand could help the country weather global slowdowns. Final consumption expenditure rose by 0.7% in the April-to-June quarter, after falling 0.1% in the first quarter.

Private consumption climbed by 0.5%, helped by higher spending on motor vehicles and on entertainment and sports. Experts said this suggested that shoppers were feeling more confident, in part thanks to tame inflation and a relatively easy job market.

Exports of goods and services grew by 4.2% in that quarter, showing a clear rebound for a country tied into global supply chains and trade tensions. Semiconductors led the way, with petroleum and chemical products also making strong gains.

Get seen where it counts. Advertise in Cryptopolitan Research and reach crypto’s sharpest investors and builders.