The United States and South Korea have progressed in trade discussions, focusing on a substantial $US350 billion investment in the American economy. These talks followed negotiations and ceremonies where President Donald Trump received a gold medal and crown from South Korean President Lee Jae Myung, who expressed strong support while Washington and Seoul worked to finalize financial commitments during Trump’s Asia trip.
While both countries indicated positive advancements, with Trump noting that matters were ‘pretty much finalised,’ no formal agreement has been signed yet. The proposed framework involves phased investments, collaboration in shipbuilding, and a reduction in Trump’s tariffs on South Korean automobile exports, as stated by Kim Yong-beom, Chief of Staff for Policy under President Lee. The White House has not yet issued an official response.
Shortly after South Korea’s announcement of the agreement, the White House published a fact sheet outlining planned acquisitions of American equipment and energy, along with US investments from Korean firms. This includes Korean Air, the country’s national carrier, purchasing 103 aircraft from Boeing. According to Kim, the United States will lower import tariffs on South Korean goods from 25 per cent to 15 per cent, effective from August. The United States also agreed to accept cash investments of up to $US20 billion annually and earmark $US150 billion for its American shipbuilding operations.
The two countries have agreed that South Korea will invest in projects deemed ‘commercially reasonable,’ according to Kim. The investments will be disbursed gradually, based on the progress of each project, rather than as a single upfront payment. Korean Air, mentioned above, is the national carrier of South Korea, providing passenger and cargo services globally. Boeing is a leading aerospace company, manufacturing commercial jetliners, defense, space and security systems, and service provider of aftermarket support.
