The US and South Korea announced an economic and security agreement involving massive investments, tariff reductions, and defense expansion.

On Thursday, the United States and South Korea announced a comprehensive economic and security agreement outlining South Korea's multi-billion dollar investment plans, major U.S. tariff reductions, and expanded defense cooperation. According to the White House, Washington has approved $150 billion in South Korean investment in the U.S. shipbuilding industry. In addition, under a new memorandum of understanding, South Korea has committed to $200 billion in "strategic investments." In a major military shift, the U.S. has authorized South Korea to build nuclear-powered attack submarines, while South Korea has pledged to purchase $25 billion worth of U.S. military equipment by 2030 and announced plans to increase defense spending to 3.5% of GDP "as soon as possible." South Korea also pledged to provide a total of $33 billion in comprehensive support to U.S. forces stationed in South Korea, within the framework of its domestic laws. On trade, the U.S. will reduce Section 232 tariffs on South Korean automobiles, auto parts, timber, and wood derivatives to 15% and plans to impose Section 232 tariffs of no more than 15% on pharmaceuticals originating from South Korea. Meanwhile, South Korea pledged to remove import limits on 50,000 unmodified U.S. vehicles and agreed to cooperate with the U.S. to address non-tariff barriers affecting trade in food and agricultural products.