Jul. 31 at 3:30 AM
President Trump announced a deal that imposes a 15% tariff on imports from South Korea vs original threat of 25% & a
$350B in US-controlled investment
Before Washington imposed 25% auto tariffs in April, there were zero tariffs on most South Korean auto imports under a bilateral trade deal. The deal removes the 2.5% advantage in tariffs South Korean automakers had enjoyed over Japanese rivals - now both countries auto co.s will be hit w/ a 15% import tariff
South Korea's auto parts exports to the US (36.5% of Korea total parts export) have seen a significant increase, w/ a record high of
$8.22B in 2024 & auto exports of
$34.7B (49% of total auto exports)
Most significantly for energy markets, South Korea committed to purchasing
$100B worth of US LNG & other energy exports.
US has a goods trade deficit of
$26.1B w/ Korea but a Services trade surplus of
$6.1B. Add in income surplus of
$8.7B, the US-Korea trade deficit contracts even more.
$EWY $SPY