The United States has reached a trade agreement with South Korea, under which Korea will increase investment in the U.S. and purchase U.S. energy products, as well as open its market to American goods. In return, the U.S. has reduced its previously set tariffs on Korean goods from 25% to 15%.
U.S. President Trump stated via social media that the U.S. and South Korea have reached a 'comprehensive and complete' trade agreement. According to the agreement, South Korea will provide $350 billion (about RM14,886 billion) to the U.S. for 'investment projects owned and controlled by the U.S. and personally designated by me as President.'
He noted that Korea will also purchase $100 billion worth of liquefied natural gas or other energy products.
The agreement provides that Korea will fully open its market to U.S. goods, including automobiles, trucks, agricultural products, and more. The U.S. agrees to impose a 15% tariff on Korean exports to the U.S., while Korea will not impose any tariffs on American goods.
Trump also revealed that South Korea's President Lee Jae-myung will visit the U.S. soon for a bilateral meeting with him at the White House.
25% Tariffs on India
In addition, Trump announced that starting from August 1, a 25% tariff will be imposed on Indian goods exported to the U.S., along with additional punitive measures.
He stated that although the U.S. and India are partners, the volume of trade between the two sides has been relatively small for many years, 'because India's tariffs are simply too high and it has set the world's most stringent and objectionable non-monetary trade barriers.'
However, Trump did not detail the specifics of the 'additional punitive measures' against India, only pointing out that 'the U.S. has a huge trade deficit with India.'
According to data provided by the Office of the United States Trade Representative, in 2024, the total U.S.-India goods trade amounted to about $129.2 billion. The U.S. goods trade deficit with India was $45.7 billion, an increase of 5.4% from 2023.
August 1 Tariff Deadline Will Not Be Extended
Trump said that for trade partners that have not reached an agreement with the U.S., 'reciprocal tariffs' will take effect as scheduled on the upcoming August 1, and the deadline will not be extended.
On his social media, he wrote in all capital letters: 'THE DEADLINE OF AUGUST 1 IS THE DEADLINE OF AUGUST 1 — IT WILL NOT MOVE, IT WILL NOT BE EXTENDED. THIS IS AN IMPORTANT DAY FOR AMERICA!!!'
Trump announced in April that he would impose a 10% basic tariff on trade partners and additional 'reciprocal tariffs' on most countries, with some rates as high as 50%. However, later, all additional tariffs except the 10% base tariff were postponed until July 9. Yet as parties counted down to the July 9 deadline, Trump again delayed the effective date to August 1.
50% Tariff on Imported Copper Products
Additionally, according to a fact sheet released by the White House, Trump signed a proclamation that starting August 1, a unified 50% tariff will be imposed on copper semi-finished products and copper-rich derivatives.
Suspension of Duty-Free Privilege for Low-Value Parcels
Trump also suspended a provision allowing parcels valued below $800 (about RM3,402) to be imported duty-free, further cracking down on the circumvention of tariffs through low-priced goods, especially targeting Chinese e-commerce platforms like Shein and Temu.
The new measures will take effect on August 29, limiting exemptions and increasing penalties for violations, with fines up to $10,000.