South Korea Reduces Tariffs in Fresh US Trade Agreement
South Korea has taken a big step in its trade ties with the United States by agreeing to cut tariffs on key goods. This move comes as part of a new trade deal aimed at boosting economic links between the two nations. On October 29, 2025, South Korean officials shared details of the agreement, which lowers import duties on various products to make trade smoother and fairer.
The deal focuses on reducing reciprocal tariffs from 25% to 15%. This change will especially help South Korea’s car and auto parts industry, which now faces lower duties when exporting to the US. In return, South Korea plans to invest $350 billion in American projects over the coming years. This investment is meant to create jobs and strengthen supply chains on both sides of the Pacific.
US President Donald Trump called the agreement a “breakthrough” during his recent Asia trip. He noted that it helps avoid higher tariffs that could have hurt exporters. South Korea’s presidential aide, Kim Yong-beom, explained that the talks wrapped up quickly after starting in July. The goal is to level the playing field with other countries, like Japan, which already enjoys similar rates.
Experts say this deal could lead to more affordable cars for US buyers and better market access for Korean firms. It also shows how allies are working together amid global trade tensions. While details on other sectors like electronics are still being finalized, both sides expect the changes to take effect soon. This agreement marks a positive shift in US-South Korea relations, promising growth for businesses and consumers alike.
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