Ten percent off the tariff
US President Trump and his South Korean counterpart have reached a trade agreement. As a result, the US import tariff on South Korean cars will decrease significantly.
After months of negotiations, the United States and South Korea finalized a trade agreement worth $350 billion on Wednesday. President Donald Trump stated that the agreement with South Korea was reached during a dinner hosted by South Korean President Lee Jae-myung at the Asia-Pacific Economic Cooperation (APEC) summit. This is particularly good news for South Korean car manufacturers, including Hyundai and Kia.
“We have reached a trade deal,” Trump said. Seoul will spend $150 billion on shipbuilding in the US and make an additional $200 billion in extra investments in the country. Under the trade agreement, US import tariffs on cars from South Korea will decrease from 25 to 15 percent. The agreement represents another success for Trump that he can add to the list of deals he has made during his Asia trip. The most important moment of that trip will follow on Thursday, when he meets Chinese leader Xi Jinping.