President Donald Trump said on Wednesday that the United States will impose a rate of 15 percent on imports from South Korea because he praised a “full and complete trade agreement” between the two countries.
“South Korea will give the United States $ 350 billion dollars for investments,” Trump said in a position on his social platform, adding that the country would buy $ 100 billion in liquid natural gas or other energy products.
The rate of 15 percent is lower than a rate of 25 percent that Trump had threatened earlier and was equal to taxes from US trade agreements with Japan and the European Union.
Trump added that an extra non -specific “large sum of money” will be invested by Seoul.
“This amount will be announced in the coming two weeks when the president of South Korea, Lee Jae Myung, comes to the White House for a bilateral meeting,” said Trump, who offered congratulations to his South Korean counterpart for his “electoral success”.
– 'Overcome a major obstacle' –
The meeting will be their first since Lee took on the presidency in June.
In a statement posted on Facebook, Lee mentioned the deal “The First Major Trade Challenge” since his administration assumed power and added: “We have overcome a great obstacle.”
“Because of this deal, the government has eliminated the uncertainty surrounding export conditions and ensured that the American rates on our exports are lower than or equal to those imposed on our most important trade competitors,” Lee said.
Lee was chosen in a vote last month after the accusation of his predecessor, Yoon Suk Yeol, about his disastrous declaration of the State of Siege in December.
Now at the helm of the fourth largest economy in Asia, which is highly dependent on export, the Handelsdeal marks an early victory for Lee's term of office.
“This agreement represents the convergence of American interests in revitalizing the production sector and our determination to strengthen the competitiveness of Korean companies on the American market,” Lee's statement continued.
Since the return to the White House in January, Trump has imposed a radical rate of 10 percent on allies and competitors – with the rates that rise for tens of economies on 1 August – in addition to steeper levels on steel, aluminum and cars.
In contrast to the 15 percent rate for South Korea, Trump also placed 25 percent rates for import from India and 50 percent on Wednesday from Brazil.
The last percentage was partly determined as a retribution for what Trump called a “witch hunt” against his extreme right-wing ally Jair Bolsonaro, the former president of Brazil, who is currently undergoing a criminal process.
Bys-JGC/MLM
