The United States and South Korea have reached a new trade agreement that will see both countries reduce tariffs from 25% to 15%, officials confirmed on Wednesday. The deal was finalized during talks between US President Donald Trump and South Korean President Lee Jae Myung in Gyeongju.
South Korea reaches agreement on a trade deal with the US that will lower tariffs. Follow live updates. https://t.co/WGWN4ijsNu pic.twitter.com/jsogHDKvoh
— CNN (@CNN) October 29, 2025
As part of the agreement, South Korea will invest $350 billion in the US, including $200 billion in direct cash and $150 billion in shipbuilding projects, while also committing to buy $100 billion worth of liquified natural gas (LNG). Trump hailed the discussions as “tremendous,” saying they covered both economic and national security matters.
The move is expected to ease pressure on South Korea’s electronics and auto industries, which had been hit by high tariffs earlier this year. However, tensions persist following recent US immigration raids targeting South Korean workers.
Trump will next meet Chinese President Xi Jinping during the APEC summit in Busan on Thursday.
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