President Donald Trump says the US will charge a 15 per cent tariff on imports from South Korea, in what he called a full and complete trade deal.
It comes just a day before the August 1 deadline for countries to reach agreements with the US or be hit with higher tariffs.
South Korea had been facing a 25 per cent levy if it had not struck a deal.
Pressure on Seoul had been mounting after Japan, a key competitor in the car and manufacturing industries, secured a 15 per cent tariff rate with the US last week.
The deal, which will also see Seoul invest US$350 billion in the US, has been touted as a success in South Korea.
This, especially given the Asian country’s record trade surplus of at least US$56 billion with the US last year.
The 15 per cent tariff rate will cover both cars and semiconductors, two of Seoul’s main exports to the US.
But steel and aluminium, other big earners for South Korea, will be taxed at 50 per cent, in line with the global rate President Trump has set.
Nevertheless, South Korean leader Lee Jae Myung has praised the deal, saying it would put his country on an equal or better footing compared with other countries.
English (US) ·