South Korea denies written US trade deal amid Trump announcement
The U.S. tariff on South Korean imports will be 15%, Trump said after meeting its ministers on Wednesday, down from a threatened 25%, but the U.S. gave scarce details, apart from social media posts by him and Commerce Secretary Howard Lutnick.
Speaking to reporters as he arrived home from a visit to Washington, Trade Minister Yeo Han-koo said the two sides had an oral negotiation because of time constraints.
'What we felt during this negotiation is that the U.S. trade environment is fundamentally changing. This is completely different from the first Trump term,' Yeo said of the deal easing tension with a top-10 trading partner and key Asian ally.
'I think we are entering a new normal era. So, although we have overcome this crisis, we cannot be relieved, because we do not know when we will face pressure from tariffs or non-tariff measures again.'
The White House, which issued factsheets on trade deals with Japan and the European Union a day after striking them, has not yet released a separate one on the pact with South Korea.
Trump said South Korea would invest $350 billion in the United States in projects 'owned and controlled by the United States' and selected by him.
Lutnick said 90% of profits from the investments would go to the American people, while White House Press Secretary Karoline Leavitt said they would go to the U.S. government to help repay debt.
More discussions were necessary on the investment fund's profit structure, said Industry Minister Kim Jung-kwan, who returned with Yeo.
Finance Minister Koo Yun-cheol, also one of the negotiation team, said detailed plans for the $350-billion investment would need be established.
Wednesday's deal did not tackle most non-tariff barriers discussed during working-level talks, as well as security and foreign exchange aspects. - Reuters
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
11 minutes ago
- The Star
UK to start returning some migrants to France within days under new deal
FILE PHOTO: British Prime Minister Keir Starmer (L) and French President Emmanuel Macron shake hands as they hold a press conference on July 10, 2025 in London, England. Leon Neal/Pool via REUTERS/File Photo LONDON (Reuters) -Britain said it will begin implementing a deal to return some migrants who arrive on small boats to France within days, a key part of its plans to cut illegal migration, after a treaty on the arrangement is ratified on Tuesday. Under the new deal, France has agreed to accept the return of undocumented people arriving in Britain by small boats, in exchange for Britain agreeing to accept an equal number of legitimate asylum seekers with British family connections. Prime Minister Keir Starmer and French President Emmanuel Macron announced the "one in, one out" pilot scheme on migrant returns last month. More than 25,000 people have come to Britain on small boats so far in 2025, and Starmer has pledged to "smash the gangs" of smugglers to try to reduce the number of arrivals. Starmer, whose popularity has fallen since winning an election landslide last year, is facing pressure to stop small boats from Nigel Farage's Reform UK party, which leads national opinion polls. In recent weeks in England, there have been a number of protests around hotels housing the asylum seekers who have arrived on small boats, attended by both anti-immigration and pro-immigration groups. French Interior Minister Bruno Retailleau said on X that the new agreement between the countries has a "clear objective" to break up the people-smuggling networks, although British interior minister Yvette Cooper would not say how many people would be returned under the scheme. "The numbers will start lower and then build up," she told Sky News on Tuesday, adding that the people returned would be those who had immediately arrived on small boats, rather than people already in Britain. Government sources previously said the agreement would involve about 50 returns a week, or 2,600 a year, a fraction of the more than 35,000 arrivals reported last year. Critics of the scheme have said that the scale will not be sufficient to act as a deterrent, but Cooper said that the agreement with France was just one part of the government's wider plan. The government has also targeted people smugglers with sanctions, clamped down on social media adverts and is working with delivery firms to tackle the illegal work that is often promised to migrants. A treaty on the scheme was signed last week but not previously announced ahead of Tuesday's ratification. Britain said the European Commission and European Union member states had given the green light to the plan. (Reporting by Alistair Smout; Additional reporting by Sarah Young and Sudip Kar-Gupta;Editing by William James and Helen Popper)
The Sun
43 minutes ago
- The Sun
South Korea to aid firms facing higher US tariffs amid trade deal
SEOUL: South Korea will prepare measures to help companies cope with higher U.S. tariffs and expand into new markets, the Finance Ministry said on Tuesday, as it kicked off a task force to prepare the new administration's economic policy plans. On the domestic front, the government will come up with measures to boost short-term demand, as well as financial support for mid- to long-term technology development to enhance market competitiveness, it said in a statement. South Korea reached a trade deal with the U.S. last week, just days before President Donald Trump's threatened 25% tariff rate was due to come in on its exports to the United States. The trade deal set tariffs on exports from the Asian country at 15%, still higher than a baseline 10% rate and the near zero tariffs for exports under a Korea-U.S. free trade agreement. Still, topics left unresolved by the deal provide scope for more disputes as the two countries prepare for a summit between Trump and new South Korean President Lee Jae Myung in the coming weeks. Trump may use the summit to try to squeeze more concessions on areas such as defence costs and corporate investments, left out of the deal, while non-tariff barriers and currency could prove thorny issues, experts said. South Korea's Finance Ministry, however, sought to give a positive spin on the agreement. The deal reduced uncertainty over the trade environment, while a $350 billion investment package included in the deal will provide new business opportunities for companies, deepen economic cooperation between the two countries, and contribute to a more stable supply chain, the ministry said. The administration of President Lee also plans to prepare policy measures to foster new industries, such as artificial intelligence, semiconductors and 'K-contents' and include them in economic growth strategies and budget plans due to be announced later this month. K-contents refers to a range of cultural and entertainment goods produced by the country ranging from K-pop to Korean dramas that have boomed globally. The ministry vowed to bring regulatory improvements to vitalise business activity, as it kicked off a meeting with the country's major business groups. Asia's fourth-largest economy grew in the second quarter at the fastest pace in more than a year on rebounding consumer spending and a surge in technology exports, but still faces headwinds from slowing global trade amid the sweeping tariffs. The International Monetary Fund last week raised its outlook for most advanced and emerging economies this year based on developments around U.S. tariff negotiations, but South Korea was among the exceptions, with its 2025 growth forecast revised down to 0.8% from 1.0%. - Reuters
Daily Express
43 minutes ago
- Daily Express
Mazda expects $1 billion profit loss from United States tariffs
Published on: Tuesday, August 05, 2025 Published on: Tue, Aug 05, 2025 By: Reuters Text Size: Mazda has been focusing on boosting sales of its CX-50 crossover SUV, manufactured at its Guanajuato plant in Mexico, which exports vehicles to the U.S. - Reuters pic TOKYO: Mazda Motor announced on Tuesday that it expects a 145.2 billion yen ($987.02 million) impact on its operating profit this fiscal year due to U.S. import tariffs. The Japanese automaker is implementing measures to mitigate the financial strain, including altering shipping routes, ramping up production at its Alabama plant, and adjusting output volumes. Chief Financial Officer Jeffrey Guyton stated that the effect of higher U.S. duties remains 'quite significant,' with exports from Japan facing a 15% tariff and those from Mexico subject to 25%. Without countermeasures, the company could face a 233.5-billion-yen operating profit loss for the year ending March 2026. Mazda has been focusing on boosting sales of its CX-50 crossover SUV, manufactured at its Guanajuato plant in Mexico, which exports vehicles to the U.S. The automaker reported selling approximately 210,000 vehicles in the U.S. during the first half of the year, a 4% increase from the previous year. Advertisement Despite the challenges, Mazda has projected a full-year operating profit of ¥50 billion for the fiscal year ending March 2026, a sharp decline from the previous year. The company had earlier withheld financial guidance due to uncertainties surrounding U.S. tariffs.
