U.S. President Donald Trump announced that the country will impose a 15 percent tariff on imports from the Republic of Korea, a reduction from the previously stated 25 percent. “We have agreed to a Tariff for South Korea of 15 percent. America will not be charged a tariff,” Trump stated on his platform Truth Social. He further noted that Korea would “give to the United States $350 billion for investments owned and controlled by the United States, and selected by myself, as President.” In addition, Seoul has committed to purchasing liquefied natural gas (LNG) and other energy products valued at $100 billion, along with accepting American products like cars and agricultural goods, according to the U.S. president. U.S. Commerce Secretary Howard Lutnick confirmed that this tariff rate will also extend to car imports.
Recent figures show this new 15 percent tariff aligns South Korean exports with those of Japan and the European Union, both of which recently negotiated similar rates to avoid the higher 25 percent tariff.
The $350 billion investment package from South Korea is expected to be split, with $150 billion directed toward revitalizing the U.S. shipbuilding sector through the “Make America Shipbuilding Great Again” initiative, and the remaining $200 billion earmarked for sectors like semiconductors, nuclear energy, batteries, and biotechnology.
Read more: U.S. to impose 25 percent tariff on India starting August 1, says Trump
South Korea’s FDI in the U.S.
Official statistics from the U.S. Department of Commerce report that by the end of 2023, South Korea’s total stock of foreign direct investment (FDI) in the United States reached $78.2 billion, with the auto components and industrial equipment sectors comprising the largest shares. Meanwhile, South Korean direct investment abroad in January 2025 showed a decrease of $939.1 million, reflecting fluctuating global investment trends, as tracked by the Bank of Korea.
Regarding LNG, South Korea was already a major importer of U.S. liquefied natural gas prior to this agreement, and industry specialists anticipate that these imports will remain stable or increase slightly in 2025—potentially rising to 65 billion cubic meters (bcm) or 48 million metric tons per annum—especially if South Korea invests in U.S. projects such as the Alaska LNG initiative. However, organizations like Fitch Solutions and the Institute for Energy Economics and Financial Analysis (IEEFA) caution that South Korea’s declining domestic LNG demand and long-term net zero ambitions may limit the scale or duration of such purchases, despite the $100 billion figure cited by both sides.
South Korean President Lee Jae-myung has publicly stated that the agreement eliminates uncertainties for Korean exporters, particularly in automotive and technology sectors, while the U.S. government asserts the deal will ensure “open trade” for U.S. agricultural and manufactured products entering South Korea, including cars and trucks, without import duties. South Korean government sources have also indicated that the majority of the $350 billion investment package may consist of loans and guarantees, with a smaller portion in direct equity investment, but strict purchase guarantees and safeguards are likely to be included to manage risk.
