In a significant development in international trade, President Trump announced a new trade agreement with South Korea ahead of the August 1 tariff deadline. The deal sets a 15% tariff on South Korean products, aimed at addressing trade imbalances and opening new markets. Both Korean equities and the won rallied following the announcement, reflecting positive market sentiment. The negotiations involved intense discussions, particularly concerning the automotive sector. While the agreement marks a diplomatic victory for President Lee, it has drawn criticism from agricultural sectors in South Korea that are concerned about potential concessions. This trade deal positions South Korea as the sixth-largest trading partner of the United States and includes commitments for significant investment aimed at enhancing US shipbuilding capabilities.