U.S. and South Korea Strike Landmark Trade Deal: A $350 Billion Pact

The United States and South Korea have successfully reached a crucial trade agreement during a summit between their leaders, ending a deadlock that had threatened South Korea’s export-driven economy. Under the terms of the deal, South Korea will make a $350 billion investment in the U.S., resulting in reduced import duties on South Korean goods.

The agreement notably lowers tariffs on Korean automobiles and auto parts from 25% to 15%, aligning them with Japanese competitors. This move is significant for major carmakers like Hyundai and Kia, who view the U.S. as a key market. Hyundai expressed appreciation for the efforts made by both governments to eliminate business uncertainties and foster a positive trade environment.

The trade pact announcement, a joint effort by President Trump and South Korean President Lee Jae Myung, immediately strengthened the Korean won, which rose by 0.54% against the dollar. Economists highlight that resolving the prolonged tariff issue was crucial to stabilizing South Korea's currency and maintaining its automotive sector's competitiveness in the U.S. market.