President Donald Trump announced on Wednesday that the United States has reached a “Full and Complete Trade Deal” with the Republic of Korea, worth $450 billion.
What Happened: In a Truth Social post on Wednesday night, Trump said, “South Korea will provide "$350 Billion Dollars for Investments owned and controlled by the United States, and selected by myself, as President,” as part of the deal.
Additionally, the deal includes a commitment from South Korea to purchase “$100 Billion Dollars of LNG, or other Energy products,” Trump said, adding that more investment details will be revealed “within the next two weeks” during a scheduled White House meeting with South Korean President Lee Jae Myung.
As part of the deal, Trump says, South Korea will “be completely OPEN TO TRADE with the United States,” adding that the country “will accept American product including Cars and Trucks, Agriculture, etc.”
He also notes that as part of this arrangement, imports from South Korea will be charged a 15% tariff, while American goods will not be subject to a tariff.
Why It Matters: Economist Peter Schiff, once again, noted that the 15% tariffs charged on South Korean imports will be paid by American importers, and not South Korea.
He says, even if these costs aren’t passed on to consumers, the importer’s profits will take a hit. “One way or another, Americans pay,” he says, adding that the winners are foreigners, who will now get to buy goods that Americans can no longer afford.
This marks another major trade deal in recent days, after the European Union, Japan, Vietnam and Indonesia. However, the United States has yet to sign a trade deal with the vast majority of humanity.
Photo Courtesy: Joey Sussman on Shutterstock.com
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