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.

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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.

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