US and South Korea Near Landmark Trade Deal with $350 Billion Investment and Tariff Reduction to 15 Percent

Welcome to South Korea Tariff News and Tracker, your trusted source for the latest on US-South Korea tariff developments. As of October 26, 2025, the big headline is that the United States and South Korea are on the verge of finalizing a major new trade deal. President Donald Trump, speaking from Air Force One on Friday, told reporters that a trade pact with South Korea is “pretty close to being finalized,” and he’s ready to wrap things up as soon as Seoul provides final commitments. According to Korea JoongAng Daily and the Malay Mail, this deal follows several rounds of intense negotiations since July, when a framework was first struck. The core terms of the emerging deal are significant for listeners tracking tariffs and market impacts. Under the tentative agreement, South Korea has pledged to invest $350 billion in the United States. In exchange, the US will lower its “reciprocal” tariff rate—applied since April—on a wide range of Korean goods from 25 percent to 15 percent. This adjustment would apply specifically to major sectors like automobiles, where Korean exporters have faced steep duties in recent months. Trump indicated he is ready to sign, and both governments are aiming to announce a finalized agreement, potentially at the upcoming Asia-Pacific Economic Cooperation summit in Gyeongju. However, officials such as Korea’s National Security Adviser Wi Sung-lac note that a few sticking points remain, including the method and timeline for South Korea’s massive investment commitment, and how returns from that investment will be distributed. Since earlier this year, the tariff environment has been turbulent. Following President Trump’s sweeping use of his authority under the International Emergency Economic Powers Act, the US imposed universal 10 percent tariffs on most countries, with major US tariffs on South Korea specifically spiking to 25 percent in April. The Korean government responded by announcing emergency support for its auto sector and requested urgent negotiations instead of retaliation. High-level officials have since shuttled back and forth from Seoul to Washington, underscoring the significance of these tariffs for Korean industry and the bilateral relationship. In the meantime, ongoing discussions have included linking defense spending and nuclear energy cooperation to the trade package, reflecting the complex, multifaceted nature of US-Korea ties. Listeners should keep an eye on the upcoming APEC summit, where a “joint fact sheet” could be announced if the last hurdles are cleared. Industry and government leaders alike are eager for resolution, hoping that the new tariff rate will stabilize trade and reduce uncertainty for supply chains spanning both countries. Thank you for tuning in to South Korea Tariff News and Tracker. Don’t forget to subscribe so you never miss an update. This has been a Quiet Please production, for more check out quiet please dot ai. For more check out https://www.quietperiodplease.com/ Avoid This content was created in partnership and with the help of Artificial Intelligence AI.