Following the European Union’s lead just days earlier, South Korea finalized a trade agreement with the United States on Wednesday, July 30. The country, which, along with France, is the largest exporter of cosmetic products to the United States, agreed to a 15% customs duty on most of its products—significantly lower than the 25% rate previously threatened by Donald Trump.
President Donald Trump said on Wednesday the U.S. will charge a 15% tariff on imports from South Korea as part of a deal with the fourth Asian economy.
The 15 percent rate is below a 25 percent tariff that Trump had threatened earlier, and was equivalent to deals with Japan and the European Union.
In a statement on Facebook, President of South Korea, Lee Jae Myung, called the deal “the first major trade challenge” since his administration took power, adding: “We have overcome a major hurdle.”
“Through this deal, the government has eliminated uncertainty surrounding export conditions and ensured that US tariffs on our exports are either lower than or equal to those imposed on our major trade competitors.”
Mixed reaction
South Korea’s six major business associations, including the Korea Chamber of Commerce, said in a joint statement: “We view this agreement as a critical milestone that will not only ease trade-related uncertainties but also pave the way for a significant strengthening of economic cooperation between the two countries.
“With much of the external uncertainty now resolved, the Korean business community will redouble efforts to boost domestic investment and job creation.”
But a handful of civic groups, including farmers and labor organizations, protested at the US Embassy in central Seoul, opposing “Trump’s madman strategy.”
Demonstrators held signs reading “No Trump! No King!” and pointed out that there may be additional negotiations when Lee meets Trump this month.
“Trump’s actions amount to excessive interference in our domestic affairs,” said Park Sung-hoon, head of the Korean Apple Growers Association.
In 2024, the United States recorded a USD 66 billion trade deficit with South Korea, based on U.S. Treasury Department data.
Seventh bilateral tariff deal in a raw
With this latest deal, Washington has now concluded seven agreements, including previous ones with the United Kingdom, Japan, the European Union, the Philippines, Vietnam, and Indonesia.
Since returning to the White House in January, Trump has imposed a sweeping 10 percent tariff on trading partners — with extra rates for dozens of economies set for August 1 — alongside steeper tolls on steel, aluminum and autos.
News of the deal with South Korea came as Trump on Wednesday imposed 25 percent tariffs on Indian goods and 50 percent on those from Brazil.
