South Korea confirmed a new tariff agreement with the United States to reduce trade uncertainties for its export-driven economy. President Lee Jae Myung emphasized that the deal removes major risks and levels the playing field for Korean companies. The government believes this move will boost confidence across key industries.
Previously, South Korean exports faced the threat of a 25 percent tariff. However, the revised agreement now limits US tariffs on Korean goods to 15 percent. According to officials, this new rate creates fairer competition for Korean firms in global markets.
Trade uncertainties had raised concerns for Korea’s semiconductor, shipbuilding, and auto sectors. The new tariff agreement helps reduce pressure on these industries. In particular, it improves their access to the US market.
President Lee shared a message stating the agreement clears a major obstacle. He added that Korean businesses can now compete equally or even better than global peers. The announcement followed confirmation from US President Donald Trump regarding the tariff revision.
As part of this trade arrangement, South Korea pledged a $350 billion investment into strategic US industries. These include semiconductors, secondary batteries, energy, and biotechnology. Furthermore, $150 billion will support South Korean shipbuilders entering the US shipbuilding market.
Trade uncertainties have long challenged South Korean exporters. This deal provides stability and opens doors for deeper industrial cooperation with the US. Korean firms now expect smoother business operations and better growth prospects.
Kim Yong-beom, the president’s top policy adviser, explained additional elements of the agreement. The US also reduced tariffs on Korean automobiles from 25 percent to 15 percent. This change benefits one of South Korea’s largest export categories.
However, not all areas reached full agreement. Agricultural products like rice and beef remained sensitive topics. Despite pressure, South Korea declined to further open its domestic markets in these sectors.
The government views this deal as a win for economic diplomacy. It allows Korea to maintain control over vital sectors while gaining better access to others. The broader goal remains long-term cooperation with the United States.
As the global economy faces ongoing volatility, Korea seeks to lock in secure trade partnerships. The reduced tariffs should allow exporters to plan confidently and expand further into the US.
