President Donald Trump announced Wednesday that the United States will impose a 15% tariff on imports from South Korea—lower than the previously threatened 25%—as part of a new trade agreement aimed at reducing tensions with one of America’s key Asian allies and top economic partners.

The announcement followed a White House meeting between Trump and senior South Korean officials and comes just days ahead of the president’s self-imposed August 1 deadline to finalize a series of new trade policies.

South Korea, a major exporter of semiconductors, automobiles, and steel, had faced the prospect of steep tariffs before the agreement was reached.

“I am pleased to announce that the United States of America has agreed to a Full and Complete Trade Deal with the Republic of Korea,” Trump wrote on Truth Social.

The deal represents a key diplomatic achievement for South Korean President Lee Jae Myung, who took office in June after a snap election. In a statement posted on Facebook, Lee praised the agreement for removing “uncertainty in the export environment” and ensuring U.S. tariffs would remain “lower than or at the same level as major competitors.”

“We have crossed a big hurdle,” he added.

Trump confirmed that President Lee is expected to visit Washington within the next two weeks for their first official meeting.

Under the terms of the agreement, South Korea will invest $350 billion in U.S.-based projects selected by the Trump administration and commit to purchasing $100 billion worth of American energy products. Trump also said that Seoul would lift tariffs on U.S. automobiles and agricultural goods.

However, South Korean officials emphasized that the country’s domestic rice and beef markets will remain protected for now. Negotiations over U.S. demands on food safety and regulatory standards are still ongoing.

The agreement signals a temporary de-escalation in trade friction and reflects Trump’s broader strategy of securing more favorable trade terms with key U.S. partners ahead of his policy deadline.