South Korea has confirmed that no formal written agreement exists yet on the trade deal announced by US President Donald Trump this week.
On Wednesday, President Trump said the US would impose a 15 per cent tariff on South Korean imports. This is a reduction from the previously threatened 25 per cent. However, details remain limited, with updates mostly shared through social media by Trump and Commerce Secretary Howard Lutnick.
South Korea’s Trade Minister Yeo Han-koo told reporters, after returning from Washington, that negotiations took place orally due to time constraints.
He said the US trade environment is changing fundamentally. “This is very different from the first Trump administration,” Yeo added. The deal aims to ease tensions between the two countries, which are important trading partners and allies in Asia.
Yeo warned that while the immediate crisis has passed, South Korea must stay vigilant. He said there is no guarantee when tariffs or other trade measures might reappear.
Investment plans and outstanding issues
Unlike recent deals with Japan and the European Union, the White House has not released an official factsheet on the South Korea agreement.
President Trump announced that South Korea would invest $350 billion in the United States. These projects will be “owned and controlled by the United States” and chosen by Trump.
Commerce Secretary Lutnick said 90 per cent of the profits from these investments would go to the American public. White House Press Secretary Karoline Leavitt added that the funds would help repay government debt.
Industry Minister Kim Jung-kwan, who accompanied Yeo, said they need further talks on the investment fund’s profit structure. Finance Minister Koo Yun-cheol also stressed the need for detailed plans on the $350 billion investment.
The Wednesday deal did not resolve many non-tariff barriers raised in earlier talks. It also left out issues related to security and foreign exchange.
