President Donald Trump outlined the framework of a commerce take care of leaders in Seoul on Wednesday that can embrace a 15% tariff on imports from South Korea.
Trump introduced the deal Wednesday afternoon in one other social media submit, offering few particulars concerning the scope of the settlement.
Underneath the phrases Trump outlined, South Korea will purchase $100 billion in U.S. liquefied pure gasoline or different power merchandise and provides the U.S. $350 billion for investments.
“The Deal is that South Korea will give to america $350 Billion {Dollars} for Investments owned and managed by america, and chosen by myself, as President,” Trump wrote on Fact Social.
Trump stated South Korea would announce additional U.S. investments within the coming weeks when South Korean President Lee Jae Myung visits the White Home.
“South Korea has agreed to take a position a big sum of cash for their Funding functions,” Trump wrote.
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As with a string of different commerce offers Trump has introduced in latest weeks, Trump stated South Korea would open its markets, tariff free, to the U.S. Trump stated that it would come with cars, vans and agricultural merchandise.
To this point, a 15% import responsibility is the bottom Trump has introduced in latest commerce offers. Solely the UK, which didn’t have a considerable commerce deficit with the U.S., received a ten% tariff.
Trump’s take care of the EU features a 15% tariff on imports, though the pact nonetheless wants the approval of all 27 members of the bloc.
Trump has introduced offers with Indonesia (19% tariff on imports), the Philippines (19% tariff on imports), and Japan (15% tariff on imports).
Earlier Wednesday, the U.S. president threatened India with a 25% tariff and a “penalty” for purchasing from Russia.
In 2024, U.S. commerce with South Korea totaled an estimated $197.1 billion. U.S. items exports to South Korea had been $65.5 billion, whereas U.S. items imports from South Korea totaled $131.5 billion. That yr, the U.S. items commerce deficit with Korea was $66 billion.
Economists, companies and some publicly traded corporations have warned that tariffs might elevate costs on a variety of shopper merchandise.
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Trump has stated he needs to make use of tariffs to revive manufacturing jobs misplaced to lower-wage nations in a long time previous, shift the tax burden away from U.S. households, and pay down the nationwide debt.
A tariff is a tax on imported items paid by the particular person or firm that imports the products. The importer can take in the price of the tariffs or attempt to go the associated fee on to shoppers by way of increased costs.
Syndicated with permission from The Middle Sq..
