Historic Trade Deal: U.S. and South Korea Forge Economic and Security Pact

U.S. and South Korea reveal a significant trade agreement involving $150 billion Korean investment in American shipbuilding and $200 billion for industrial sectors. Duties on Korean exports to the U.S. will drop to 15%. Collaboration on nuclear submarines and energy marks a notable diplomatic accomplishment for both nations.

The United States and South Korea have unveiled a groundbreaking trade agreement that will see a massive Korean investment of $150 billion in the American shipbuilding industry, along with an additional $200 billion allocated for various industrial sectors. This announcement follows intense negotiations culminating in a landmark deal directed at reducing American import duties on South Korean products from 25% to a more favorable 15%.

In a move set to reshape economic and security policies, South Korean President Lee Jae Myung and U.S. President Donald Trump formalized the agreement that also includes strategic investments in sectors such as artificial intelligence and nuclear energy. A memorandum of understanding signed by officials outlines future projects and funding mechanisms to prevent market instability, with South Korea committing to stagger its investments over several years.

This deal, which also includes cooperation on building nuclear-powered submarines, is seen as a diplomatic victory for President Lee, who aims to strengthen his country's global trade ties while ensuring economic stability. The agreement marks a pivotal moment in U.S.-South Korea relations, setting a new standard for bilateral trade and security deals.

(With inputs from agencies.)