Just before a scheduled 25% tariff hike, President Donald Trump announced a "full and complete" trade agreement with South Korea that will boost U.S. agricultural exports, cut tariffs, and channel massive investments into American infrastructure and energy.

The deal, according to Trump's statement, will make South Korea "completely open to trade with the United States," including sectors such as cars, trucks, agriculture, and energy. Starting August 1, South Korea's reciprocal tariff rate will be reduced to 15%, aligning it with the rates negotiated with Japan and the European Union.

Key Elements of the Deal:

• $350 billion in South Korean investment in U.S.-based projects selected by President Trump.

• $100 billion in energy purchases, primarily liquefied natural gas (LNG), from American producers.

• Expanded market access for U.S. agricultural products, with a focus on beef and pork.

Agricultural Sector Reaction:

Industry leaders are cautiously optimistic. "Korea is the largest export destination for U.S. beef, and a vital market for U.S. pork," said Dan Halstrom, president and CEO of the U.S. Meat Export Federation. "We hope this agreement addresses non-tariff barriers and improves access in line with global standards."

According to the USDA, U.S. ag exports to South Korea exceeded $8 billion in 2024, up from $6 billion in 2012. Beef alone represented one-quarter of total exports. The 2025 agreement could accelerate this growth, depending on enforcement and implementation.

Investment Oversight Raises Questions

Trump emphasized that he would control the allocation of South Korea's $350 billion investment commitment, echoing similar arrangements from recent deals with Japan and the UK. Details on how the investments will be structured or governed remain unclear, and South Korean authorities have not publicly confirmed the terms.

Transparency Concerns

Despite the scale of the announcement, no official agreement text or fact sheet has been released by the White House. Of seven trade deals unveiled since the April 2 tariff directive, only the U.K. agreement has been published in full. This lack of transparency has drawn criticism from both domestic stakeholders and international counterparts.

Tariff Leverage Strategy

The timing of the deal-just two days before a 25% tariff was due-suggests the Trump administration is leveraging tariffs to extract bilateral concessions. While the new 15% tariff still represents a significant increase from the nearly duty-free trade terms under the 2007 U.S.-Korea FTA, officials argue that equalizing tariff rates across allies (Japan, EU, Korea) restores balance.

South Korea had previously enjoyed generous terms under that FTA, which was revised in Trump's first term. Today's deal rewrites that framework, putting more weight on investment commitments and reciprocal market access.

Next Steps

South Korean President Lee Jae Myung is expected to visit Washington soon, where further details of the agreement may be finalized. U.S. ag exporters and trade watchers alike are eager for clarity on enforcement, timelines, and regulatory harmonization.

Until the full text is released, the true impact of the deal on U.S. farmers, ranchers, and energy producers remains an open question. But with billions promised and tariffs adjusted, Trump's latest trade pact is already reshaping the conversation around U.S. global competitiveness in 2025.