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U.S. and South Korea Finalize Trade-Security Pact, Approve Korean Nuclear Submarines, Cut Tariffs to 15%

The joint fact sheet ties U.S. tariff relief to a $350 billion Korean investment pledge capped at $20 billion per year.

Overview

  • The White House and Seoul published a joint fact sheet on Nov. 14, concluding negotiations launched around the Oct. 29 Lee–Trump summit.
  • Washington approved South Korea’s development of nuclear-powered attack submarines and backed a process toward civil uranium enrichment and spent-fuel reprocessing, subject to U.S. law and the bilateral 123 agreement, with work to define fuel-sourcing paths.
  • The U.S. will apply a 15% tariff rate to key Korean goods including automobiles, auto parts, timber and lumber, cap pharmaceutical tariffs at 15%, and pledge chip tariff terms no less favorable than future comparable deals.
  • South Korea pledged $350 billion in U.S. investments—$150 billion for shipbuilding and $200 billion for strategic sectors under an upcoming MOU—with projects limited to commercially viable ventures and annual dollar outflows capped at $20 billion.
  • Defense provisions reaffirm U.S. extended deterrence and USFK presence as Seoul targets defense spending of 3.5% of GDP, commits $25 billion in U.S. arms purchases by 2030, plans $33 billion in USFK support, and accelerates the wartime OPCON transition.