Trump Closes Korea Tariff Deal at 15%, Averts 25% Auto Tariffs

The U.S. and South Korea reached a last-minute trade agreement, reducing tariffs to 15% on automobiles and other goods effective August 1. The deal spares sensitive agricultural sectors like rice and beef from further market liberalization, preserving South Korea's food security protections.

President TRUMP announced a parallel $350 billion investment package via Truth Social, including $100 billion in U.S. energy purchases and $150 billion for shipbuilding modernization. Semiconductors, nuclear power, and biotech sectors will receive $200 billion in targeted investments.

Korean negotiators successfully resisted pressure to open agricultural markets, maintaining restrictions on rice imports and beef from older cattle. The agreement positions South Korea favorably compared to other U.S. trade partners facing tariff escalations.