Trump announces a trade agreement with South Korea very similar to the pacts with Japan and the EU

President Donald Trump announced via Truth Social that the United States reached a trade deal with the Republic of Korea in a pact that, at least in principle, looks very similar to treaties agreed with Japan and the European Union.

In the release, Trump previewed several key details of the deal, including announcing that South Korea, a key Washington ally in Asia, will have a fixed 15% tariff, while U.S. products will not be subject to a flat rate.

The president also announced the creation of a $350 billion investment fund to be controlled by Washington and the acquisition of $100 billion in U.S. energy products by the Korean republic.

"I am pleased to announce that the United States of America has agreed to a Full and Complete Trade Deal with the Republic of Korea. The Deal is that South Korea will give to the United States $350 Billion Dollars for Investments owned and controlled by the United States, and selected by myself, as President," Trump wrote. "Additionally, South Korea will purchase $100 Billion Dollars of LNG, or other Energy products and, further, South Korea has agreed to invest a large sum of money for their Investment purposes. This sum will be announced within the next two weeks when the President of South Korea, Lee Jae Myung, comes to the White House for a Bilateral Meeting."

Then, the president announced that South Korea will be completely open for the U.S. market, including the key automotive sector.

"I would also like to congratulate the new President on his Electoral Success. It is also agreed that South Korea will be completely OPEN TO TRADE with the United States, and that they will accept American products including Cars and Trucks, Agriculture, etc (...) We have agreed to a Tariff for South Korea of 15%. America will not be charged a Tariff."

The agreement with Seoul represents notable relief automakers and other industries that were highly exposed to the very real possibility of a very high trade tariff.

The president's announcement comes shortly before the deadline for reaching trade agreements with Washington or face high retaliatory tariffs.

Following the announcement of the agreement with Korea, which adds to those already signed with Japan and the European Union, all attention now turns to neighbors Mexico and Canada, which are racing against the clock to close their own deals.

If Mexico and Canada fail to reach an agreement, their fate could be similar to that of India, which as of Aug. 1 will face tariffs of 25%, President Trump announced earlier Wednesday.