US President Donald Trump finalized a major trade deal with South Korean President Lee Jae Myung on Wednesday. The announcement came during a dinner on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum. Both leaders confirmed that the deal resolves long-standing disputes over tariffs and investment commitments between the two allies.
Under the agreement, South Korea will invest $350 billion in the United States in exchange for lower tariffs. The investment splits into $200 billion in cash, capped at $20 billion per year, and $150 billion in shipbuilding projects. The deal also ensures that profits are shared 50/50 before initial investments are recouped.
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Trump praised the “dramatic progress” in talks, describing the deal as a breakthrough after stalled negotiations. South Korean officials said both sides agreed to pursue only commercially viable projects. US Commerce Secretary Howard Lutnick will lead a committee to evaluate proposed investments.
Trump also expressed optimism about his upcoming summit with Chinese President Xi Jinping in Busan. He indicated a possible reduction in US tariffs on Chinese goods if Beijing curbs exports of fentanyl precursor chemicals. Chinese officials welcomed the meeting, calling it a chance to inject “new momentum” into US-China relations.
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The visit came amid tensions in the region, including North Korea’s recent missile test. Trump skipped the main APEC summit to meet regional leaders. Despite formal diplomatic ceremonies, hundreds of South Korean protesters gathered to oppose Trump’s policies, highlighting mixed reactions to his trade and security initiatives.