Washington: US President Donald Trump announced on Wednesday that his administration has reached an agreement to lower the “reciprocal” tariffs on South Korea from a proposed 25 percent to 15 percent. This decision comes in exchange for significant investments and market openings from South Korea, as well as a planned summit with South Korean President Lee Jae Myung at the White House in the upcoming two weeks.

According to Philippines News Agency, Trump made the announcement through a social media post shortly after meeting with South Korea’s Finance Minister Koo Yun-cheol and other top negotiators. The meeting aimed to finalize the agreement before Friday, which was the deadline for the imposition of steep blanket tariffs unless a deal was reached.

In his statement on Truth Social, Trump confirmed the agreement to a 15 percent tariff on South Korea, while emphasizing that America will not incur any tariffs. He described the trade deal as “full and complete,” highlighting that South Korea will provide the United States with USD350 billion for investments owned and controlled by the US, personally selected by him.

Trump further claimed that South Korea has agreed to fully open its markets to US trade, accepting American products such as cars, trucks, and agricultural goods. Additionally, South Korea committed to purchasing USD100 billion worth of US liquefied natural gas or other energy products and to make substantial investments for Seoul’s own purposes.

The President mentioned that the specifics of this investment will be disclosed when South Korean President Lee Jae Myung visits the White House for a bilateral meeting within the next two weeks.

Commerce Secretary Howard Lutnick, later in the day, communicated via X, formerly known as Twitter, that the auto tariff rate for South Korea will be reduced to 15 percent from the current 25 percent. He assured that South Korea will not face any discrimination compared to other countries concerning tariffs on semiconductors and pharmaceuticals. However, tariffs on steel, aluminum, and copper remain unaffected by the new agreement.

Lutnick also addressed South Korea’s USD350 billion investment plan, stating that 90 percent of the profits from these investments will benefit the American populace.