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President Donald Trump said on Wednesday the US will charge a 15 per cent tariff on imports from South Korea, down from a threatened 25 per cent, as part of a deal that eases tensions with a top-10 trading partner and key Asian ally.
The arrangement, announced shortly after Trump met with Korean officials at the White House, came during a blizzard of trade policy announcements ahead of a self-imposed August 1 deadline, according to a Reuters report.
That is when Trump has promised higher tariffs will kick in on US imports from a range of countries. Imports from South Korea, a powerhouse exporter of computer chips, cars and steel, faced a 25 per cent rate prior to Wednesday's last-minute deal.
"I am pleased to announce that the United States of America has agreed to a Full and Complete Trade Deal with the Republic of Korea," Trump wrote on Truth Social.
The negotiations were an early test for South Korean President Lee Jae Myung, who took office in June after a snap election. He said the deal had eliminated uncertainty in the export environment and set US tariffs lower than or at the same level as major competitors.
"We have crossed a big hurdle," Lee said in a post on Facebook. Trump said Lee would visit the White House "within the next two weeks" for his first meeting with the US president.
South Korea agreed to invest $350 billion in the United States in projects selected by Trump and to purchase $100 billion in energy products, the US president said.
He also said South Korea would accept American products, including autos and agriculture into its markets and impose no import duties on them.
South Korea's top officials said the country's rice and beef markets would not be further open, and that discussion over US demands on food regulations continue.
"We avoided the worst and chose the next best," said Cheong In-kyo, a former South Korean trade minister. Much will depend on how the investments to the US are structured, he added.
"Depending how and where $350 billion will be spent, this fund will be looked at differently."