Overview
- Trump and President Lee said the agreement is “pretty much finalized,” keeping reciprocal U.S. tariffs on Korean goods at 15% in exchange for a $350 billion investment plan.
- Seoul’s package will include $200 billion in cash capped at $20 billion per year and $150 billion for shipbuilding and industrial projects, with profit sharing before initial outlays are recouped and a U.S.-led committee vetting deals.
- South Korean officials said the arrangement features commercially viable projects only, with reported sector details including MFN treatment for pharmaceuticals and lumber and semiconductor tariff terms no worse than Taiwan’s.
- Final documents and some provisions still require formal sign-offs, including a memorandum of understanding and parliamentary approval in Seoul, with a factsheet expected within days.
- Trump next meets China’s Xi in Busan after negotiators outlined a framework to pause steeper tariffs and rare-earth curbs, as he signals possible tariff relief for commitments on fentanyl precursors; Tokyo talks already yielded missile purchases and a critical minerals pact while North Korea tested cruise missiles before Trump’s arrival and Lee sought U.S. approval to fuel nuclear-powered submarines.