In a major step forward at the Asia-Pacific Economic Cooperation summit in South Korea, former US President Donald Trump and South Korean President Lee Jae Myung agreed on the final details. This historic trade agreement was reached on October 29, 2025. The deal includes South Korea promising to invest $350 billion in the US. Additionally, it involves lowering US tariffs on South Korean goods to 15%.
The announcement comes after months of tense talks to work out the details of how South Korea would use the investment money. The deal splits the $350 billion into $200 billion in cash investments. This will be given out over time. Furthermore, $150 billion will go toward revitalizing the US shipbuilding industry. This will allow for joint ventures and new shipyard construction. It is a key area that Trump has focused on for economic recovery.
President Lee was hopeful about the deal’s economic effects. He mentioned that it clears up any doubts about exports. It also puts South Korea on equal or better footing with other US trade partners. The deal sets the same tariff rates on South Korean goods, such as electronics and cars, as those that Japan and the European Union put on their goods.
The trade agreement also talks about access to markets. South Korea has agreed to make it easier for American goods to get into the country. They will still protect sensitive agricultural sectors. Both leaders stressed how important the partnership is for security in the region. Lee promised to spend more on defense. They will work together to reprocess nuclear fuel for submarines.
Trump, who was looking forward to talking with China’s President Xi Jinping the next day, said the deal was a step toward better trade between the US and Asia. It would also lead to more stability in the region.
This trade breakthrough is a turning point in the economic ties between the US and South Korea. It promises more investment, more jobs, and a stronger alliance in the global marketplace. The National Assembly of South Korea needs to approve the agreement before it can be put into effect.
This change is a key sign of changing economic conditions in the Asia-Pacific region. It shows that both sides are still working to improve their relationship while dealing with difficult geopolitical issues.
