US-South Korea Reach Provisional Trade Deal with 15 Percent Tariff Amid Semiconductor Tensions and Economic Uncertainty
Failed to add items
Sorry, we are unable to add the item because your shopping cart is already at capacity.
Add to basket failed.
Please try again later
Add to Wish List failed.
Please try again later
Remove from Wish List failed.
Please try again later
Follow podcast failed
Unfollow podcast failed
US-South Korea Reach Provisional Trade Deal with 15 Percent Tariff Amid Semiconductor Tensions and Economic Uncertainty
-
Narrated by:
-
By:
About this listen
The headline today: the United States and South Korea have a provisional deal that puts a 15 percent tariff on Korean imports into the U.S., after President Trump initially threatened 25 percent. According to The Korea Times, the July 30 announcement mirrors arrangements with Japan and the EU: a 15 percent tariff paired with Korean investment commitments in the U.S., while U.S. products entering Korea remain tariff-free for now. The Korea Times adds that Korean car exports to the U.S. will face that 15 percent rate, down from the 25 percent Trump applied to most of the world’s autos earlier this year. Attention now turns to whether the U.S. will extend tariffs to pharmaceuticals, steel, and—crucially—semiconductors, which have been duty-free under KORUS.
Channel NewsAsia reports added uncertainty after President Trump said on August 6 he plans to impose about a 100 percent tariff on imported semiconductors unless companies manufacture in the U.S. Seoul says it secured most-favored-nation treatment for chips in the broader deal, but chipmakers remain on edge as key details aren’t public. Expect this to dominate the anticipated Lee–Trump summit later this month.
Korea’s near-term data reflect the shock. The Korea JoongAng Daily, citing Korea Customs Service figures, says exports fell 4.3 percent year-on-year in the first 10 days of August, with shipments to the U.S. down 14.2 percent on the tariff moves. Officials note the daily average of exports actually rose, and the new reciprocal 15 percent rate only took effect on August 7, suggesting front-loading before duties kicked in. By item, semiconductors rose 12 percent, while steel and petrochemicals fell sharply.
On consumer goods, GOBankingRates notes the current 15 percent tariff could lift U.S. prices for Korean beauty and wellness products, though the impact may be modest compared with the originally floated 25 percent. U.S. imports of Korean cosmetics were $1.7 billion in 2024, and brands are assessing whether to raise prices or absorb margins.
Policy watchers expect more to come. JD Supra and Mondaq briefings on the “reciprocal tariffs” framework say the Administration’s country-by-country rates span roughly 10 to 41 percent across more than 60 partners, with the August 7 measures operational. Legal analysts are tracking sector carve-outs and phase-in rules that could affect Korean categories beyond autos.
Diplomatically, The Japan Times reports Seoul’s strategy—large-scale U.S. investment pledges, flexibility in talks, and rapid follow-up—helped secure one of the most favorable tariff outcomes before the deadline, but tougher bargaining looms on defense cost-sharing and chip policy. The Korea Economic Daily adds a Lee–Trump summit is likely around August 25, as Seoul simultaneously deepens trade ties with Vietnam and others to cushion U.S. tariff exposure.
Thanks for tuning in, and don’t forget to subscribe. This has been a quiet please production, for more check out quiet please dot ai.
For more check out https://www.quietperiodplease.com/
Avoid ths tariff fee's and check out these deals https://amzn.to/4iaM94Q
No reviews yet
In the spirit of reconciliation, Audible acknowledges the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respect to their elders past and present and extend that respect to all Aboriginal and Torres Strait Islander peoples today.