Donald Trump closes his first trade deal … ‘horrible’ South Korea agreement renegotiated after US president threatened to kill it
South Korea escapes the new 25 per cent tariff on imported steel - but must accept quotas on steel shipments to the United States
The United States and South Korea have reached an agreement in principle to amend a decade-old free-trade pact that President Donald Trump used to call “horrible” and a “disaster” - his first such deal and a victory, albeit a modest one, for his toughened approach to America’s economic partners.
Under the deal, South Korea agreed to limit its steel exports to the US and made concessions on auto imports.
In return, the US agreed to exempt South Korea from the 25 per cent tariff on steel that Trump announced this month.
The deal removes a major economic irritant as the allies prepare for high-stakes meetings on North Korea.
Trump and South Korean President Moon Jae-in are planning separate meetings with North Korea’s Kim Jong-un in the coming weeks.
Kim made a surprise visit to China this week and met with President Xi Jinping. China’s official news agency said on Thursday that Kim would be willing to give up his nuclear weapons and hold a summit with the US.