Trump announces trade deal with South Korea

With just hours remaining before President Donald Trump’s Friday deadline for a new wave of global tariffs, the White House has reached a last-minute trade agreement with South Korea.

(NBC)- With just hours remaining before President Donald Trump’s Friday deadline for a new wave of global tariffs, the White House has reached a last-minute trade agreement with South Korea. The deal includes a 15% tariff on South Korean goods entering the U.S.—lower than previously threatened, but significantly higher than in recent years. In return, South Korea will invest billions of dollars into the American economy.

“It’s literally trillions of dollars ultimately being brought into our country,” Trump said, adding, “We’re now negotiating with various other countries. And the rest, we’re just sending out the bill.”

Countries that failed to secure a deal face steep penalties. India has been hit with a 25% tariff, plus an additional import tax for continuing to purchase Russian oil amid the war in Ukraine. Brazil faces an even harsher penalty: a 50% tariff on goods, sparking concern among U.S. coffee businesses already bracing for rising prices.

“It would only be by cents because we don’t want it to be too much for the client,” said Dulcinea Herrera, CEO of Café Corazón in Kansas City, Missouri.

The inflationary risk tied to the tariffs played into the Federal Reserve’s decision to keep interest rates steady. That decision runs counter to Trump’s public push for rate cuts, aimed at stimulating further economic growth. “We have no inflation… and we should be lowering the rate,” the president argued.

Inflation ticked up slightly in June but continues a downward trend for the year, paired with low unemployment and a strong stock market. After contracting early in the year, U.S. GDP grew by a better-than-expected 3% this spring. However, economic forecasts for the coming months remain mixed.