S Korea announces lowering of some tariffs as part of new US trade deal

BBC:

The US and South Korea have reached a broad trade deal, both countries have said following talks between their leaders.

South Korea’s presidential aide, Kim Yong-beom, said the two sides will keep reciprocal tariffs at 15%, as was agreed earlier this year, but that the taxes on car and car parts would be lowered.

South Korea will also invest $350bn in the US, including $200bn in cash investment and $150bn in shipbuilding, Kim said.

US President Donald Trump, who is currently on a week-long trip in Asia, said the deal was “pretty much finalised” at a dinner following the discussions, which lasted almost two hours. He did not give further details.

“We had a tremendous meeting today with South Korea”, Trump said, adding that “a lot was determined”.

“We discussed some other things to do with national security et cetera. And I think we came to a conclusion on a lot of very important items.”

Both sides had played down the prospect of a breakthrough ahead of Wednesday’s talks – disappointing many in South Korea’s electronics, chip and auto industries, which had been hoping for some clarity amidst the tariff chaos.

Trump had slapped a tariff rate on Seoul of 25% earlier this year – which South Korean President Lee Jae Myung managed to negotiate down to 15%, after Seoul said it would invest $350bn in the US and buy $100bn worth of liquified natural gas.

But the White House later increase its demands as part of the trade talks, with Trump pushing for cash investments in the US.

Both countries have historically been key allies – but tensions spiked after hundreds of South Koreans were detained in an immigration raid in the US last month.