Trump Sets 15% Tariff for Imports From South Korea

President Trump has criticized Brazil’s trial of its former President Jair Bolsonaro, above, who is facing charges of an attempted coup. (Arthur Menescal/Bloomberg)

President Donald Trump on Wednesday announced he would set a 15% tariff on imports from South Korea, a lower threshold than he had been threatening earlier as part of a trade deal that includes a pledge by Korea to invest $350 billion in the U.S.

The president announced the deal on his social media platform after earlier saying he was meeting with South Korean officials in the afternoon as they negotiated to “buy down” his threatened 25% tariff rate.

In addition to the $350 billion Korea has pledged to invest in things Trump said would be chosen by himself as president and owned and controlled by the U.S., South Korea agreed to buy $100 billion of liquefied natural gas and other energy and invest “a large sum of money” for their investment purposes, the announcement said.

“This sum will be announced within the next two weeks when the President of South Korea, Lee Jae Myung, comes to the White House” for a bilateral meeting, Trump said.

The deal also says South Korea will accept American products including cars and trucks, and agriculture and not apply tariffs.

Trump has shown a willingness to lower tariffs in return for commitments to invest in or buy U.S. goods, as was the case in recent deals with the European Union and Japan.

In a social-media post about the South Korean delegation, Trump also said he has spoken to many leaders looking to make offers to reduce tariffs ahead of the Aug. 1 deadline. He also announced an agreement with Pakistan that includes developing their oil reserves. Further details weren’t released.

Trump Makes New 50% Tariff on Brazil Imports Official

President Trump issued an executive order reiterating the 50% tariff rate on Brazil that he previously announced on July 9 in a letter to the country’s president, Luiz Inácio Lula da Silva.

The new rate goes into effect in seven days, on Aug. 6, with some exceptions for goods already in transit.

Trump invoked the International Emergency Economic Powers Act, among other laws, to formalize the new tariff rate. His order states that Brazil’s actions have interfered with the U.S. economy, violated human rights, and undermined U.S. interests, among other accusations.

The order also criticized Brazil’s persecution of former president of Jair Bolsonaro. Trump had previously criticized the trial of Bolsonaro, who faces charges for allegedly attempting a coup.

“The policies, practices, and actions of the Government of Brazil are repugnant to the moral and political values of democratic and free societies and conflict with the policy of the United States,” the order reads.

“If the United States doesn’t want to buy something of ours, we are going to look for someone who will,” Lula da Silva told the New York Times. “I’m not going to cry over spilled milk.”

The order includes a long list of exempted products from the new tariff, including orange juice and brazil nuts.

Trump Won’t Extend Tariff Deadline. India Faces 25% Rate.

Investors hoping for a flurry of trade deals before the Aug. 1 deadline may be underwhelmed at the moment. Talks with China ended in Stockholm yesterday, while a deal with India has yet to be announced.

President Trump criticized India for having high tariffs and non-tariff trade barriers, as well as buying military equipment and energy from Russia. In a post Wednesday morning on his Truth Social media site, he said that the country will have a 25% tariff rate from Aug. 1, plus a penalty.

Trump also said that the Aug. 1 deadline is firm. That’s when countries that haven’t reached trade deals yet face higher tariffs outlined by the White House.

“THE AUGUST FIRST DEADLINE IS THE AUGUST FIRST DEADLINE,” Trump wrote. ”—IT STANDS STRONG, AND WILL NOT BE EXTENDED. A BIG DAY FOR AMERICA!!!”

Meanwhile, a clutch of well-known German companies have put figures on how much taxes on imports to the U.S. are costing them.

Share of Adidas tumbled even though the sporting goods company maintained its sales guidance. The maker of Samba soccer shoes said the tariffs will increase the cost of its products in the U.S. by as much as €200 million ($230 million) for the rest of the year.

Luxury car maker Porsche , the subsidiary of Volkswagen that’s famous for its 911 model, had an even starker warning. It took a hit of around $460 million from tariffs in the first half of the year because it didn’t pass on the higher costs to customers. After the European Union trade deal cut tariffs to 15% from now, Porsche lowered its guidance for the year.

Mercedes-Benz also warned that revenue will be significantly lower this year because of tariffs. The auto maker had previously dropped guidance altogether because of uncertainty about how high the levies might end up.

Negotiations between China the U.S. ended Tuesday. Treasury Secretary Scott Bessent said that “nothing is agreed until we speak with President Donald Trump.” Trump and Chinese leader Xi Jinping may meet in person over the next few weeks.

Write to Reshma Kapadia at reshma.kapadia@barrons.com, Anita Hamilton at anita.hamilton@barrons.com, and Brian Swint at brian.swint@barrons.com