Name: Trump’s Korea Trade Deal: What You Need to Know
Uploaded: 2025-07-31T11:00:00Z
Duration: 2 min 37 s
Description: President Trump unveils a trade deal with South Korea ahead of the Aug. 1 deadline. WSJ’s Korea Bureau Chief Timothy Martin unpacks the details.

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President Trump unveils a trade deal with South Korea ahead of the Aug. 1 deadline. WSJ’s Korea Bureau Chief Timothy Martin unpacks the details. Photo: Jeon Heon-Kyun/Shutterstock

https://m.wsj.net/video/20250731/efe4ccb8-dee1-4a80-860f-22d299ad30c3/1/hls/manifest-hd-wifi.m3u8

President Trump unveils a trade deal with South Korea ahead of the Aug. 1 deadline. WSJ’s Korea Bureau Chief Timothy Martin unpacks the details.

Trump’s Korea Trade Deal: What You Need to Know

South Korea was in an awkward position. Its key trading rivals in the European Union in Japan had secured an arrangement with Washington on things like autos and reciprocal tariffs. South Korea needed to make a deal. That's what we saw today because South Korea competes in major industries like semiconductors, autos, steel, and aluminum. And to see other countries have better arrangements with the US would've been unacceptable. If we look at the deals between Japan and South Korea, they're very similar in terms of reciprocal tariffs. They also share this investment commitment, and Japan has pledged $550 billion to the US. South Korea, if we look at the 350 billion, about 200 billion will be earmarked for things like semiconductors, batteries, nuclear energy, biopharmaceuticals. The remaining 150 billion is saved for shipbuilding, and that's been a top priority, not only for the US, but President Trump. The gap with China is widening, and South Korea has one of the most advanced manufacturing basis for shipbuilding, and it's been a top priority for Seoul as they try to come to some type of arrangement with trade. There was a slogan that South Korean officials took to the US negotiators: Make American Shipbuilding Great Again. Newly elected South Korean President, Lee Jae-myung, is going to the White House within the next two weeks, but his trip won't only be celebrating this trade deal. There are lingering tensions between the two countries. The US has roughly 28,500 American troops in South Korea. This is home to the US's largest overseas military base. But what role and at what size the US will be in South Korea is an open question. You have South Korea under President Lee, who took office just in June, wanting to take South Korea's foreign policy in a broader direction. He wants to get along more with China and Russia than his conservative predecessor. He's made overtures to North Korea to try and reestablish communication, forward the peace process. But we have a US administration now that very clearly sees China as the most important threat in the Indo-Pacific region. Korea, in theory, could be a big helper, a big assistant with that competition, but we'll have to see if Seoul is willing to acquiesce.

Trump’s Korea Trade Deal: What You Need to Know

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