South Korea avoids US tariffs hike, but tech and pharma exports still in limbo
South Korea has reached a trade agreement with the US, avoiding steep 25% tariffs but leaving duties unresolved on key exports like semiconductors and pharmaceuticals.While Seoul successfully protected sensitive domestic issues—blocking increased US rice imports and older beef over mad cow fears—the deal includes a $350bn Korean investment pledge, with $150bn directed at reviving America’s shipbuilding industry, sparking concerns over technology leaks.
The country narrowly escaped a technical recession, though proposed 15% tariffs and the scale of investment have raised economic worries. Separately, President Trump demands $10bn annually from South Korea to cover US troop costs, though defence talks will now be addressed in an upcoming summit.
The agreement eases some trade uncertainties but leaves critical export and security tensions unresolved.
Al Jazeera's Jack Barton reports from Seoul, South Korea.
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