Overview
- President Trump confirmed the agreement, which sets $200 billion in cash investments over 10 years with a $20 billion annual cap and allocates $150 billion for joint shipbuilding projects.
- U.S. tariffs on Korean cars are set to fall to 15 percent, while officials disagree publicly on whether semiconductor tariff treatment will match Taiwan’s.
- South Korea says it obtained safeguards including a 50-50 profit split with adjustment clauses and an umbrella structure after U.S. negotiators pressed for a larger package and threatened to keep a 25 percent auto tariff.
- The deal launches a Technology Prosperity initiative spanning AI, next-generation telecommunications, biotechnology, quantum innovation and space, and establishes a bilateral shipbuilding council.
- Implementation hurdles persist, including unresolved 50 percent duties on steel and aluminum and the need for National Assembly approval of the investment plan.