President Donald Trump on Wednesday unveiled a major new trade agreement with South Korea, declaring a $350 billion windfall for the United States in what he described as a historic economic victory ahead of his looming August 1 tariff deadline.
In a post on Truth Social, Trump announced that South Korea would provide the United States with “$350 Billion Dollars for Investments owned and controlled by the United States, and selected by myself, as President.” He added that South Korea would also purchase $100 billion worth of American liquefied natural gas (LNG) and other energy products, while pledging additional capital for investment opportunities within the U.S.
As part of the new arrangement, Trump said that American goods entering South Korea will no longer face tariffs, whereas South Korean products sold in the U.S. will be hit with a 15% tariff—down from the 25% levy previously imposed by the administration, but still a sharp departure from the zero-tariff terms under the original 2011 United States-Korea Free Trade Agreement (KORUS).
“South Korea will be completely OPEN TO TRADE with the United States,” Trump declared, framing the move as a definitive step toward fixing the long-lopsided trade relationship.
The president’s announcement marks the latest in a string of high-stakes trade victories in recent weeks as the administration pressures nations to strike bilateral deals before steep new tariffs automatically kick in at the start of August. Just hours before the South Korea announcement, Trump revealed a separate deal with Pakistan to jointly develop its oil reserves in partnership with a U.S.-led consortium.
“We are in the process of choosing the Oil Company that will lead this Partnership. Who knows, maybe they’ll be selling Oil to India some day!” Trump quipped.
The president also signaled that other nations, now facing the threat of heightened tariffs, are rushing to the table. In recent weeks, Trump has announced or teased deals with the European Union, Japan, and Pakistan, while issuing tariff warnings to countries like India, Brazil, and Canada for policies seen as adverse to American interests.
The $350 billion figure tied to the South Korean deal is expected to include investments across a wide array of sectors, including technology, energy infrastructure, and advanced manufacturing. A White House official said the investments will be guided by U.S. national security considerations and will prioritize domestic job creation. South Korea’s purchase of $100 billion in U.S. energy products also marks a major shift in Asian energy dynamics, reducing its reliance on Middle Eastern and Russian suppliers.
The White House emphasized that these investments will be under the “ownership and control” of the United States, distinguishing them from passive foreign capital injections, and will reflect a new model of “America First economic cooperation.”
Notably, the reduction in tariffs from 25% to 15% on South Korean goods still represents a significant premium over the KORUS framework, which had eliminated nearly all trade barriers between the two countries by 2016. Trump had long criticized KORUS as “a terrible deal” that disadvantaged American workers and allowed foreign firms to dominate U.S. markets with little reciprocity.
The move is part of Trump’s broader effort to reshape the global trade order on terms more favorable to American industry and labor. The administration has argued that the old free trade consensus hollowed out American manufacturing and fueled massive trade deficits, particularly with East Asian nations.
“Other Countries are making offers for a Tariff reduction,” Trump said Wednesday. “All of this will help reduce our Trade Deficit in a very major way.”
The president added that a full accounting of the deal’s benefits will be made public “at the appropriate time,” but insisted the results would speak for themselves.
With just two weeks until the deadline, Trump’s trade agenda appears to be accelerating, as foreign governments scramble to cut deals to avoid punitive tariffs. Trump has made clear that those who refuse to engage in fair and reciprocal trade with the United States will face consequences — and so far, major economies seem to be taking him at his word.
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