Trump and Lee finalize US-Korea trade pact with US$350B investment

U.S. President Donald Trump and South Korean President Lee Jae Myung finalized a long-stalled trade agreement on Wednesday in Gyeongju, South Korea, officials said, with Washington agreeing to lower automobile tariffs on Korean imports to 15 percent and Seoul committing to a US350 billion investment package for the United States. The summit took place on the sidelines of the Asia-Pacific Economic Cooperation meetings.

Presidential chief of staff for policy Kim Yongbeom said the deal confirms the detailed terms of a framework first agreed on July 30. Under the final arrangement, the United States will reduce its 25 percent tariff on South Korean cars and auto parts to 15 percent, matching reciprocal U.S. tariffs on Korean goods that took effect in August. In return, South Korea will provide US200 billion in cash investments and allocate an additional US150 billion toward cooperative shipbuilding projects in the United States. Kim said investment disbursements will follow project progress and will be limited to US20 billion per year to minimize market disruption, with much of the annual sum to be raised through interest and dividend returns on foreign exchange reserves.