Trump Secures Major Trade Deal with South Korea as Won Rises and Tariff Fears Ease
President Trump clinches landmark trade deal with South Korea, lifting markets and calming tariff fears.
US President Donald Trump stunned markets on October 29, 2025, by declaring a long-awaited trade deal with South Korea, finalized during a high-stakes summit in Gyeongju. Speaking ahead of a dinner hosted by South Korean President Lee Jae-myung, Trump confirmed: “We did reach a deal… pretty much finalized it.” The announcement triggered an immediate rally, with the South Korean won jumping 0.54% against the dollar by 10:01 GMT, easing fears of economic turbulence.
The compact arrives just in time for Seoul’s export-heavy giants like carmakers and steel producers, who faced 25% US tariffs without an agreement — a punitive hike from the 15% secured by Japan earlier. Trump’s “America First” push had left South Korea at a competitive disadvantage, but this pact levels the playing field, promising stability for a nation where trade accounts for nearly half of GDP.
The Trump-Lee meeting capped a whirlwind three-nation Asia tour, kicking off in Malaysia at the ASEAN Summit. While specifics remain under wraps, officials hinted at lingering friction over a $350 billion investment package, where Seoul pushes to swap cash for loans and guarantees. Yet, Trump’s mercurial style — blending tough talk with swift handshakes — has once again reshaped the board.
Also Read: Brazil Eyes Breakthrough in U.S. Trade Talks as Lula Hints at Tariff Relief
For South Korea, the deal isn’t just economic relief; it’s a diplomatic lifeline amid Trump’s tariff threats and global supply chain strains. As the won climbs and exporters exhale, the pact signals a fragile thaw in US-Asia ties — proving that in Trump’s world, bold gambles can yield blockbuster wins.
Also Read: Canada to Double Non-US Exports as Trump Tariffs Threaten Economy
