On the 30th (local time), when President Donald Trump revealed the news of the South Korea-U.S. trade negotiation agreement on social media (SNS), major foreign news outlets also reported the news as breaking.
The Reuters news agency reported, "President Trump stated that the United States will impose a 15% tariff on imports from South Korea according to an agreement with its Asian trade partner," adding, "It is still unclear how South Korea's investment in the U.S. will be structured and over what time period it will take place."
The Financial Times (FT) of the United Kingdom also reported, "President Trump announced a trade agreement imposing a 15% reciprocal tariff on South Korean goods," noting, "This agreement is the latest one prior to the high tariffs President Trump will impose on various countries starting August 1."
After meeting with the South Korean delegation at the White House that day, President Trump said, "Under this agreement, South Korea will invest $350 billion in projects owned and controlled by the United States, which I will select personally as president," and stated, "South Korea will completely open its trade to U.S. products, including automobiles, trucks, and agricultural goods."
The United States has previously signed trade agreements with countries including the United Kingdom (10% tariff), the European Union (15%), Japan (15%), the Philippines (19%), and Vietnam (20%). CNN assessed, "The new 15% tariff on South Korea is higher than the minimum tariff rate of 10% previously applied to dozens of countries' products since April," explaining that while the tariff rate for South Korea is lower than the previous 25%, it is not the minimum.
CNN also reported, "EU and Japanese products are subject to a 15% tariff, but the agreement includes relief measures for tariffs that were imposed or planned for specific industries, such as automobiles and pharmaceuticals," adding, "It is unclear if South Korea has also secured similar relief measures."
The United States had set a 25% tariff on South Korean automobiles. South Korea aimed to negotiate the tariff down to 12.5%, but ultimately settled for a reduction to 15%.
The New York Times (NYT) reported, "The U.S. tariff on automobiles was set at 25% for nearly all imported vehicles," noting, "This has severely impacted sales of major South Korean automobile brands, and Hyundai Motor, which has borne most of the tariff costs, saw its operating profit decrease by 16% in the second quarter compared to the same period last year."
Concerns were also raised regarding South Korea opening its agricultural market to the United States. Bloomberg reported, "This negotiation was particularly sensitive for South Korea's new government," noting that the government of Lee Jae-myung was considering allowing greater access to the U.S. for South Korean beef and rice markets, a politically sensitive issue.
It added, "President Lee's concessions could provoke backlash from farmers and lead to divisions within the ruling party, risking the devastation of the initial 'honeymoon period' of his administration," and said, "After several months of political turmoil, the Lee Jae-myung government has lifted the spirits of corporations and consumers, and the stock market has recorded all-time highs."