By John Meyer, consultant in business – Eurasia Business News, October 29, 2025. Article no. 1863

U.S. President Donald Trump announced a significant trade breakthrough with South Korea during his Asia trip on October 29, 2025. The two leaders, Trump and South Korean President Lee Jae Myung, finalized details of a contentious trade agreement at a summit in South Korea. The deal, initially announced in late July, involves South Korea mitigating the impact of U.S. tariffs on its imports by committing to invest $350 billion into the United States in exchange for reduced tariff rates.

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The breakthrough included a division of the promised $350 billion investment into $200 billion in cash, disbursed in installments capped at $20 billion annually, and $150 billion allocated to investments in shipbuilding to help revitalize that sector. Both parties agreed to share profits equally before recovering initial investments, and only projects with commercial viability will be pursued. U.S. Commerce Secretary is set to lead an investment committee for evaluating potential projects.

The trade deal reduces U.S. tariffs on South Korean steel and autos from 25% to 15%, aligning South Korea’s tariff rates with Japan’s, which benefits South Korean manufacturers by addressing competitive disadvantages. The agreement, while announced, still requires approval by South Korea’s National Assembly.

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Trump also expressed optimism about his upcoming meeting with Chinese President Xi Jinping during the Asia-Pacific Economic Cooperation forum, signaling a broader focus on regional economic and strategic discussions. This trade breakthrough is a key milestone in Trump’s Asia trip, highlighting progress in U.S.-South Korea relations amid broader regional dynamics including North Korea missile tests and U.S.-China trade tensions.

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© Copyright 2025 – Eurasia Business News. Article no. 1863