President Trump said on Wednesday that South Korea will pay US$350 billion in exchange for reduced tariffs as part of a recently announced trade deal between the two countries.
In a Truth Social post detailing the deal, the president also said South Korea has agreed to buy “large quantities” of American oil and gas. Trump said South Korea has agreed to investment of more than $600 billion by South Korean businesses and companies in the United States.
The President described the military alliance between the two countries as “stronger than ever” and said that is why he has given approval to South Korea to build nuclear-powered submarines.
Trump announced earlier on Wednesday that he and South Korean President Lee Jae-Myung reached a trade deal during his visit to Asia.
The $350 billion investment by South Koreans is a win for America. The price tag has been a sticking point between the two countries, with South Korean leaders pushing for loans and loan guarantees instead.
The agreement comes as Trump prepares to meet face-to-face with Chinese President Xi Jinping in South Korea on Thursday. The US trade agreement with China is a big challenge.
Earlier this month, after China unveiled new export controls on rare earth minerals, Trump announced he would impose 100 percent tariffs on Chinese goods by November 1.
The United States and China have reached the outline of an agreement to temporarily halt 100 percent U.S. tariffs on Chinese goods, Treasury Secretary Scott Besant said Sunday after negotiators reached agreement on plans for a potential trade deal.
In a separate Truth Social post, Trump said he was “looking forward” to his meeting with Xi on Thursday.
