The United States and South Korea finalised a trade agreement on Wednesday, following a nearly two-hour meeting between President Donald Trump and South Korean President Lee Jae Myung. Trump announced that the deal was “pretty much finalised” over dinner after they spoke. A South Korean presidential official, Kim Yong-beom, clarified that the two nations will reduce their tariffs from 25 per cent to 15 per cent, which was previously resolved this year.
South Korea will put $350 billion into the United States through the agreement. That is $200 billion in direct cash and $150 billion into shipbuilding. Trump stated “We had a tremendous meeting today with South Korea” and said “a lot was determined” by their discussions. He said they also talked about national security and made decisions on a few significant issues.
Both Sides Had Downplayed Chances Before Meeting
Both governments indicated before the meeting on Wednesday that people cannot hope for much to happen. That was discouraging for many workers from South Korea’s electronics, computer chip and automotive industries who hoped for some straight answers regarding the tariff issue. Trump initially imposed a 25 per cent tariff on South Korean products earlier this year. Lee was able to persuade him to lower it to 15 per cent after assuring South Korea that they would invest $350 billion in
America and purchase $100 billion worth of liquid natural gas.
But the White House subsequently demanded more as part of trade talks, with Trump insisting on real cash investments and not mere promises. The two nations have traditionally been close allies, but things soured last month when hundreds of South Koreans were arrested in an immigration sweep in the United States.
Trump Receives Golden Crown and Highest Honour
Trump received a luxurious reception ahead of the trade negotiations with an honour guard and presents such as a gold crown. “I’d like to wear it now,” Trump said of the crown. Trump was also awarded the Grand Order of Mugunghwa, South Korea’s highest honour. He is the first U.S. president to receive this decoration. The presidential office of South Korea stated the award honoured “his contribution to peace on the Korean Peninsula.”
Both leaders shared a working lunch and a closed afternoon session. Outside where the two met, a few protesters had amassed chanting anti-Trump slogans. Police broke up the crowd forcibly and arrested several individuals. Yet hundreds more showed up to attend a pro-Trump demonstration near the spot, with some spouting anti-Chinese slogans. Trump will meet Chinese President Xi Jinping on Thursday in Busan city to talk over trade between their nations as well.
News At Glance
- U.S. and South Korea completed a trade agreement reducing tariffs to 15% from 25%
- South Korea to invest $350 billion in the U.S. of which $200 billion will be in cash
- Trump declared that the deal was “pretty much finalised” following a close to two-hour meeting
- Trump was given a golden crown as well as South Korea’s highest award before the negotiations
- Trump meets Chinese President Xi Jinping on Thursday to finalise trade agreement
FAQs
Q: What did the U.S. and South Korea agree to?
A: Both nations will reduce tariffs from 25% to 15%. South Korea will put $350 billion into the U.S., $200 billion in cash and $150 billion in shipbuilding.
Q: Why were the people disappointed before the meeting?
A: Both governments had indicated that no significant progress should be expected. Workers in South Korea’s electronics, chip and automobile industries sought definitive answers regarding tariffs impacting their livelihoods.
Q: What gifts was Trump offered?
A: He got a golden crown and the Grand Order of Mugunghwa, South Korea’s highest decoration. He’s the first U.S. president to receive this honour.
Q: Were there protests during Trump’s visit?
A: Yes, a small anti-Trump group protested and police arrested some people. But hundreds more attended a pro-Trump rally nearby with some anti-Chinese rhetoric.
Q: What’s next for Trump in Asia?
A: He sits down with Chinese President Xi Jinping on Thursday in Busan to talk about trade between the U.S. and China.
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