South Korea agreed to invest $350 billion in the US in exchange for tariff reductions

South Korea agreed to pay $350 billion in exchange for reduced US tariffs.

The US President Donald Trump reported this on the social network Truth Social.

In addition, South Korea agreed to purchase large volumes of American oil and gas.

Korean businesses also invest over $600 billion in American companies.

Amid the increased cooperation, Trump said he had given Korea permission to build a nuclear submarine using secret American technology in Philadelphia to replace the outdated and much less maneuverable diesel submarines the country currently has.

Trumpʼs tariffs on South Korea

On July 31, Trump announced that the United States and South Korea had reached a new trade deal. Instead of a 25% tariff on imports , they agreed on a reduced rate of 15%. Seoul pledged to invest $350 billion in projects in the United States, including $100 billion in the purchase of liquefied natural gas and energy resources.

Part of the funds ($150 billion) were allocated to create a joint shipbuilding package Make America Shipbuilding Great Again. Another $200 billion was promised to be directed to microchips, nuclear energy, batteries and biotechnology. The agreement temporarily reduced trade tensions with one of the key Asian allies of the United States.

Trump later stated that South Korea would provide the investment upfront, although on September 22, 2025, in a comment to Reuters, the countryʼs President Lee Jae Myeon said that without a currency swap, the South Korean economy, with foreign exchange reserves of $410 billion, would plunge into a financial crisis.

Already on September 27, Reuters reported that South Korea is unable to pay $350 billion in cash, so investments in the form of loans and guarantees for them, as well as shares, are being prepared.

Author: Anastasia Zaikova

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