Trump says US to impose 15% tariff on South Korean goods
The 15 percent rate is below a 25 percent tariff that Trump had threatened earlier, and was equivalent to deals with Japan and the European Union.
Trump added that an additional unspecified "large sum of money" will be invested by Seoul.
"This sum will be announced within the next two weeks when the President of South Korea, Lee Jae Myung, comes to the White House for a Bilateral Meeting," Trump said, offering congratulations to his South Korean counterpart for his "electoral success."
South Korea's Finance Minister Koo Yun-cheol said Seoul's commitment to help the United States revive its shipbuilding industry was instrumental in reaching the deal.
"I believe MASGA made the greatest contribution to reaching today's agreement," Koo said at a news conference in Washington, referring to the "Make American Shipbuilding Great Again" proposal.
"Our world-class shipbuilding companies, equipped with the highest level of ship design and construction capabilities, are expected to help revive the US shipbuilding industry," he said.
Shares in South Korean shipbuilder Hanwha Ocean, which owns a shipyard in Philadelphia, soared more than 15 percent Thursday.
The leaders' White House meeting will be their first since Lee assumed the presidency in June.
In a statement on Facebook, Lee called the deal "the first major trade challenge" since his administration took power, adding: "We have overcome a major hurdle."
"Through this deal, the government has eliminated uncertainty surrounding export conditions and ensured that US tariffs on our exports are either lower than or equal to those imposed on our major trade competitors."
Mixed reaction
Lee was elected in a snap vote last month following the impeachment of predecessor Yoon Suk Yeol over his disastrous martial law declaration in December.
The deal marks an early victory for Lee's tenure as head of the export-reliant economy, Asia's fourth biggest.
"This agreement represents the convergence of US interests in revitalizing its manufacturing sector and our determination to strengthen Korean companies' competitiveness in the American market," Lee's statement continued.
But there were mixed reactions in South Korea.
Its six major business associations, including the Korea Chamber of Commerce, said in a joint statement: "We view this agreement as a critical milestone that will not only ease trade-related uncertainties but also pave the way for a significant strengthening of economic cooperation between the two countries.
"With much of the external uncertainty now resolved, the Korean business community will redouble efforts to boost domestic investment and job creation."
But a handful of civic groups, including farmers and labour organisations, protested at the US Embassy in central Seoul, opposing "Trump's madman strategy."
Demonstrators held signs reading "No Trump! No King!" and pointed out that there may be additional negotiations when Lee meets Trump.
"Trump's actions amount to excessive interference in our domestic affairs," said Park Sung-hoon, head of the Korean Apple Growers Association.
Since returning to the White House in January, Trump has imposed a sweeping 10 percent tariff on trading partners -- with extra rates for dozens of economies set for August 1 -- alongside steeper tolls on steel, aluminium and autos.
News of the deal with South Korea came as Trump on Wednesday imposed 25 percent tariffs on Indian goods and 50 percent on those from Brazil.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Al Etihad
36 minutes ago
- Al Etihad
Trump announces $100 billion new investment pledge from Apple
7 Aug 2025 10:27 WASHINGTON (Reuters) US President Donald Trump announced on Wednesday that Apple will invest an additional $100 billion in the United States, a move that could help it sidestep potential tariffs on iPhones. The new pledge raises Apple's total domestic investment commitment in the US to $600 billion over the next four years. Earlier this year, the company announced it would invest $500 billion and hire 20,000 workers across the country in that announcement centres on expanding Apple's supply chain and advanced manufacturing footprint in the US, but still falls short of Trump's demand that Apple begin making iPhones domestically. "Companies like Apple, they're coming home. They're all coming home," Trump told reporters in the Oval Office, moments after Apple CEO Tim Cook gave him a US-made souvenir with a 24-karat gold base."This is a significant step toward the ultimate goal of ensuring that iPhones sold in America also are made in America," Trump if Apple could eventually build entire iPhones in the US, Cook noted that many components such as semiconductors, glass and Face ID modules are already made domestically, but said that final assembly will remain overseas "for a while."While the investment pledge is significant, analysts say the numbers align with Apple's typical spending patterns and echo commitments made during both the Biden administration and Trump's previous term. In May, Trump had threatened Apple with a 25% tariff on products manufactured overseas, a sharp reversal from earlier policy when his administration had exempted smartphones, computers and other electronics from rounds of tariffs on Chinese imports. Trump's effort to reshape global trade through tariffs cost Apple $800 million in the June quarter."Today is a good step in the right direction for Apple, and it helps get on Trump's good side after what appears to be a tension-filled few months in the eyes of the Street between the White House and Apple," said Daniel Ives, an analyst with Wedbush Securities."A Savvy Solution"Apple has a mixed track record when it comes to following through on investment 2019, for instance, Cook toured a Texas factory with Trump that was promoted as a new manufacturing site. But the facility had been producing Apple computers since 2013, and Apple has since moved that production to continues to manufacture most of its products, including iPhones and iPads, in Asia, primarily in China, although it has shifted some production to Vietnam, Thailand and India in recent political pressure, analysts widely agree that building iPhones in the US remains unrealistic due to labour costs and the complexity of the global supply chain."The announcement is a savvy solution to the president's demand that Apple manufacture all iPhones in the US," said Nancy Tengler, CEO and CIO of Laffer Tengler Investments, which holds Apple shares. Partners on Apple's latest US investment effort include speciality glass maker Corning, semiconductor manufacturing equipment supplier Applied Materials, and chipmakers Texas Instruments, GlobalFoundries, Broadcom and said Samsung will supply chips from its production plant in Texas for its products, including iPhones, while GlobalWafers said it would be supplying 300mm silicon wafers from its Texas plant. Apple shares closed up 5% on Wednesday. Shares of Corning rose nearly 4% in extended trading, while Applied Materials gained almost 2%.
Arabian Post
38 minutes ago
- Arabian Post
Trump-Linked Bitcoin Miner Targets Nasdaq Listing
American Bitcoin Corp., a Bitcoin mining firm linked to Donald Trump, is making waves in the financial world with plans to list on the Nasdaq. The move marks a significant step for the cryptocurrency industry, highlighting how major players are seeking to establish more conventional footholds on Wall Street. Founded in 2021, American Bitcoin Corp. aims to scale up its operations significantly by tapping into public capital markets. The company has stated that it intends to raise substantial funds to expand its mining capacity and enhance its technological capabilities. According to internal reports, the firm has already secured partnerships with several high-profile players in the energy sector to support its ambitious plans. The firm's connection to Trump adds a layer of political intrigue to the listing process. Trump, who has long been associated with various business ventures, is reportedly involved in an advisory capacity, lending his brand and strategic expertise to the company's growth. His endorsement has proven valuable in garnering attention, not only among traditional investors but also among those with a keen interest in the intersection of politics and business. ADVERTISEMENT The move to list on Nasdaq comes at a time when the cryptocurrency mining industry faces increasing scrutiny over its environmental impact and energy consumption. Mining operations like those at American Bitcoin Corp. use vast amounts of energy to secure Bitcoin transactions, a process that has been criticised for contributing to carbon emissions. Despite this, the firm is positioning itself as an environmentally conscious entity, touting its use of renewable energy sources as part of its long-term sustainability plan. American Bitcoin Corp. is not alone in its ambition to go public. Several other firms in the digital asset space have followed similar paths, capitalising on the growing interest in cryptocurrency and blockchain technology. The listing process for such companies has been characterised by both enthusiasm and caution, as investors weigh the risks and rewards of entering an industry that is still in its infancy. The company's decision to enter the public markets through a direct listing rather than a traditional IPO is seen as an indication of its readiness to embrace the evolving financial landscape. A direct listing allows a company to bypass the usual underwriting process, allowing it to raise capital while potentially avoiding the costs and regulatory hurdles that come with a standard IPO. This strategy has been adopted by a growing number of firms in the tech and cryptocurrency sectors, where traditional methods of capital-raising are increasingly viewed as outdated. There is no doubt that American Bitcoin Corp.'s decision to list on Nasdaq could be a game-changer for the cryptocurrency space. If successful, the company's public debut could open the door for other mining firms and blockchain-based companies to follow suit, further integrating digital assets into the mainstream financial ecosystem. This would be a significant moment for the cryptocurrency industry, as it continues to move from the periphery of global finance into the centre stage. However, as with any venture tied to the volatile cryptocurrency market, the risks associated with American Bitcoin Corp.'s listing cannot be ignored. Bitcoin and other digital currencies have faced wild price fluctuations over the years, and while the long-term outlook for the sector remains optimistic, many investors are still cautious about committing to assets that are prone to such dramatic swings. As a result, American Bitcoin Corp. will likely face considerable scrutiny from both the public and regulatory bodies in the coming months. ADVERTISEMENT The company's plan also raises broader questions about the future of cryptocurrency mining in the United States. With growing concerns over the environmental cost of mining and the regulatory uncertainty surrounding the sector, American Bitcoin Corp. will need to navigate a complex web of challenges in order to maintain its position as a leading player in the industry. The involvement of high-profile figures like Trump could prove to be a double-edged sword. While his brand brings immediate attention to the company, it could also subject American Bitcoin Corp. to increased political scrutiny, particularly given the polarising nature of his public persona. The firm will need to strike a balance between leveraging Trump's influence and distancing itself from the controversy that often surrounds his name.
Arabian Post
38 minutes ago
- Arabian Post
EU Proposes Controversial Plan to Scan Private Messages for Child Abuse Material
The European Union has revived a contentious proposal, 'Chat Control,' which seeks to mandate the scanning of private communications on messaging platforms such as WhatsApp, Signal, and Telegram. The plan aims to detect and prevent the spread of child sexual abuse material, a move that has sparked intense debate regarding the balance between privacy rights and safeguarding vulnerable individuals. The proposal has drawn widespread opposition from privacy advocates, tech companies, and human rights groups. Under the revived Chat Control proposal, technology platforms would be required to implement automated scanning systems to detect and report CSAM. This initiative would bypass end-to-end encryption protocols, which many critics argue will expose personal messages to government monitoring, risking the privacy of millions of users. Proponents of the measure, including EU lawmakers, assert that the ability to combat child exploitation online outweighs potential risks to privacy. The proposal has garnered significant attention in light of the EU's commitment to online safety. However, the proposal has been met with staunch resistance from technology companies, including some of the world's largest players such as Meta, Google, and Apple. These companies argue that weakening encryption standards in the name of CSAM detection could lead to grave security vulnerabilities, putting users' data and privacy at risk. In response, several industry groups have warned that the measures could lead to an exodus of users from platforms that may be seen as no longer trustworthy or secure. ADVERTISEMENT Privacy advocates are also vocal in their concerns. Critics fear that allowing governments to scan private messages could open the door to overreach, with potential misuse of the technology for broader surveillance purposes. Many point to the possibility of authoritarian regimes using similar mechanisms to stifle free speech and monitor dissidents, undermining the very democratic principles that the EU is supposed to champion. Legal experts warn that the scope of the proposal may not align with existing international law on data privacy. Many have raised concerns about the implementation of the measure in light of the EU's own General Data Protection Regulation, a framework that places strict limits on the processing of personal data. The Chat Control proposal could trigger a legal clash, as it may be in direct conflict with the rights granted under GDPR, particularly the protection of users' communication privacy. The timing of the proposal comes as European governments grapple with the growing prevalence of online child exploitation, which has surged during the pandemic and continues to pose significant challenges to law enforcement agencies worldwide. However, critics argue that the proposal's heavy reliance on surveillance may not effectively address the root causes of CSAM distribution and could inadvertently punish innocent users, all while leaving online predators to find alternative methods of communication.
