US-South Korea finalize trade deal: What does it say?
14 Nov 2025

The United States and South Korea have finalized a trade and security agreement.

The deal reduces US import duties on South Korean goods from 25% to 15%.

Under the agreement, South Korea will build nuclear-powered submarines and form new partnerships with the US in shipbuilding, artificial intelligence (AI), and the nuclear industry.

South Korea's significant investment in US
Economic boost

South Korea will invest $350 billion in the United States as part of this deal.

This includes $200 billion in cash and $150 billion for shipbuilding projects.

The agreement also ensures that these investments won't lead to market instability.

If such a situation arises, South Korea can request adjustments in funding amounts and timings, which the US will consider "in good faith."

South Korea's nuclear submarine construction and AI partnership
Strategic collaboration

The agreement includes South Korea's commitment to building nuclear-powered submarines, with the understanding that these vessels will be constructed in Korea, potentially involving a Korean-owned shipyard in Philadelphia.

The US has agreed to assist in finding ways for South Korea to source fuel for these submarines.

This move is seen as a step toward enhancing security cooperation between the two countries.

White House fact sheet outlines agreement details
Agreement specifics

A fact sheet released by the White House detailed the terms of this agreement.

It stated that South Korea's investments would be made in installments, with no single payment exceeding $20 billion a year.

This measure is aimed at maintaining currency stability between the two nations.

The document also emphasized a mutual understanding between both countries to prevent market instability due to these investments.

Korea's response to US tariffs and trade negotiations
Tariff negotiations

The agreement comes after months of negotiations over US tariffs on South Korean exports. Earlier this year, US President Donald Trump imposed a 25% tariff on Seoul, which was later negotiated down to 15%. This was possible after South Korea agreed to invest in US.