US Imposes 15% Tariff on South Korean Imports Amid New Trade Deal

The US will set a 15% tariff on South Korean imports under a new deal, according to President Trump. This move is part of a broader trade agreement between the two countries. The tariff will apply to a wide range of South Korean imports, including electronics, automobiles, and steel. The deal is expected to benefit the US economy by reducing its trade deficit with South Korea.

WASHINGTON — US President Donald Trump has announced a new trade agreement with South Korea, which includes a 15% tariff on a wide range of South Korean imports. This move is part of a broader trade agreement aimed at reducing the US trade deficit with South Korea.

The deal, announced on Wednesday, involves South Korea agreeing to invest $350 billion in the United States in projects "owned and controlled by the United States," as selected by President Trump. This includes $150 billion earmarked for shipbuilding cooperation and investments in semiconductors, secondary batteries, biologics, and energy [1].

The new 15% tariff will apply to various South Korean imports, including electronics, automobiles, and steel. This tariff is lower than the 25% "reciprocal" tariff briefly imposed in April but remains higher than the 10% minimum tariff South Korea's and dozens of other nations' goods have faced since April [1].

South Korean President Lee Jae Myung confirmed the agreement, stating that it eliminated uncertainty in the export environment and highlighted the $150 billion shipbuilding fund as a key component [1]. South Korea is the seventh-greatest source of imports to the US, with last year's exports totaling $132 billion [1].

While the new tariff may impact South Korea's economy, it is part of a broader strategy by the US to renegotiate trade deals and reduce its trade deficit. The US trade deficit with South Korea was $66 billion last year, a 29% increase from 2023 [2].

The agreement comes as Trump's August 1 tariff deadline approaches, and other countries face similar tariff threats. Brazil, for example, will face a 50% tariff on its exports due to its ongoing trial against former President Jair Bolsonaro [3].

The new trade agreement is expected to have a positive impact on the US economy by reducing its trade deficit with South Korea. However, the long-term effects and potential retaliation from South Korea remain to be seen.

References:
[1] https://abc7ny.com/post/trump-announces-trade-agreement-south-korea-ahead-august-1-tariff-deadline/17373393/
[2] https://nypost.com/2025/07/30/us-news/trump-announces-south-korea-trade-deal-with-350b-us-investment/
[3] https://www.reuters.com/world/americas/key-tariff-plans-south-korea-brazil-india-2025-07-31/