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President Donald Trump said Wednesday that the United States and South Korea have reached a trade agreement, a claim that briefly boosted the South Korean won as markets reacted to news of reduced uncertainty for the nation.
“We did, we did. We did reach a deal,” President Trump told reporters when asked about the negotiations as he arrived for a dinner hosted by South Korean President Lee Jae Myung.
“We made our deal, pretty much finalized it,” he added later, offering no additional details.
Following the president’s remarks, the won strengthened 0.54 percent against the U.S. dollar.
Without a final agreement in place, South Korean steel and automobile products would be subject to U.S. tariffs of 25 percent instead of the 15 percent rate established in July. That higher rate would put South Korean companies at a competitive disadvantage to their Japanese rivals, who currently export to the United States under a 15 percent tariff after Tokyo reached a deal with Washington.
The meeting is part of the president’s three-nation trip through Asia that began in Malaysia during a summit with the Association of Southeast Asian Nations. Despite President Trump’s announcement, South Korean officials warned key issues remain unresolved.
Negotiators from Seoul say the two governments are still divided over the cash component of a $350 billion investment package. South Korea has pushed to reduce its direct contribution by increasing the portion covered by loans and loan guarantees instead.
President Trump is also expected to meet with Chinese President Xi Jinping in South Korea.
“President Xi is coming tomorrow. And that was, that was something that, obviously, is very important to the world, to all of us. You’ll be watching very carefully. We’re meeting right here, and we’re all looking forward to that. I think it’s going to work out,” President Trump stated.
RSBN previously reported that U.S. stock indexes closed at record highs Monday after news from the Trump administration that Washington and Beijing have agreed to what officials described as a “substantial framework” in ongoing trade negotiations. Treasury Secretary Scott Bessent said the discussions have advanced enough for both sides to prepare for presidential-level talks.
